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The present value of a future sum increases as the term (N) increases, regardless of compounding frequency.
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- What happens to a future value is you increased the rate, r? What happens to a present value?The value of a sum after investing over one or more periods is calleda) Discount Valueb) Nonec) Compound and future valued) Present valueThe future value of a single sum A. is generally larger than the present sum. B. decreases as the number of periods increases. C. does not depend upon the number of periods. D. decreases as the interest rate increases.
- Define Present value and future value. If present value and future value are equal what is the rate? Is future value always greater than present value?Which of the following statements is true about the present value factors? a. The present value factor is the reciprocal of the present value of annuity due factor. b. The present value factor decreases as the interest rate decreases. c. The present value factor is also known as the discount factor. d. The present value factor should always be greater than 1.Which of the following statements is true about the present value factors? The present value factor is the reciprocal of the present value of annuity due factor. The present value factor is also known as the discount factor. The present value factor decreases as the interest rate decreases. The present value factor should always be greater than 1.
- a) Net Present Value (Present Worth); b) Internal Rate of Return (IRR);c) External Rate of Return (ERR);d) Simple Payback Periodn is the number of periods of an investment, PV is the starting value, FVn is the future value n periods ahead, and ^ means 'to the power of'. What is the correct formula for calculating return? a)(PV/FVn)^n - 1 b)(FVn/PV)^n c)1 - (FVn/PV)^n d)(FVn/PV)^n - 1True or false When the net present value is negative, the present value index will be greater than 1?
- When using annual worth to evaluate the attractiveness of a single alternative, what value is the calculated AW compared to? a. PW b. FW c. 0.0d. MARR.Match each term with the best definition or descriptor. NPV is __________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return). IRR is ___________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return). Profitability index is __________( a unitless ratio, a unit of time, a dollar vallue, or a rate of return).What is n= , and the net present value