Which of the following cash flows has the highest present value?
A) $1000 received two years in the future when the interest rate is 4%
B) $1000 received two years in the future when the interest rate is 6%
C) $1000 received three years in the future when the interest rate is 4%
D) $1000 received three years in the future when the interest rate is 6%
Correct Answer:
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Q1: Monies received in the future are less
Q2: The present value of a cash flow
Q4: The formula to calculate the discounted value
Q5: The future value of a cash flow
Q6: Which of the following cash flows has
Q7: An ordinary annuity is
A) A series of
Q8: The formula to calculate the compounded value
Q9: If the cost of debt is 5%,
Q10: Net present value
A) Divides investment by average
Q11: Which of the following investment evaluation methods
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