2) Which of the following statements is INCORRECT based on the time value of money?A) In general, money today is worth more than money in one year.B) We define the risk-free interest rate (rf) for a given period as the interest rate at whichmoney can be borrowed or lent without risk over that period.C) We refer to (1-r) as the interest rate factor for risk-free cash flows.D) For most financial decisions, costs and benefits occur at different points in time.

Given: From the given statements whether the identified the time value of money.

the following stateme ) In general, money today is worth more than money in one year. ) We define the risk-free interest rate (rf) for a given period as the interest rate at w honey can be borrowed or lent without risk over that period. ) We refer to (1-r) as the interest rate factor for risk-free cash flows. ) For most financial decisions, costs and benefits occur at different points in time. time value of

the following stateme ) In general, money today is worth more than money in one year. ) We define the risk-free interest rate (rf) for a given period as the interest rate at w honey can be borrowed or lent without risk over that period. ) We refer to (1-r) as the interest rate factor for risk-free cash flows. ) For most financial decisions, costs and benefits occur at different points in time. time value of

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 3ST

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