Question # 4 A Report a Problem O Revisit Choose the best option indicates the current value of future cash flow over a fixed period of time at a O Present value specified rate of return. O Future value O Compounded value O Cash value
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- Match the terms to the description Time Value of Money (TVM) Discounting Present Value (PV) Future Value (FV) Cash Flow (CF) ✓ [Choose ] value of money at some later time funds in a secure investment will increase to an equivalent future amount the potential lost benefit when choosing one alternative over another transferring money into our out of an account calculating the present value of future cash flow stream value of money right now [Choose ] [Choose ] [Choose ]Which of the following discounts future cash flows to their present value at the expected rate of return, and compares that to the Initial Investment? A. internal rate of return (IRR) method B. net present value (N PV) C. discounted cash flow model D. future value methodWhich figure of merit provides an interest rate at which the present value of the future cash flows equals the amount invested? a) NPV b) IRR c) Cap Rate d) DCF Please ensure accuracy and explain your choice
- Question # 11 A Report a Problem Revisit Choose the best option * The procedure of evaluating an investors current and future financial status using the existing variables to predict future cash flows, asset values and withdrawal plans is called O Financial strategy O Financial analysis O Financial feasibility O Financial planning Deepanshu | Support +1 650-924-9221 +91 80 4719 0917 met P Type here to search N B 4 40dont use chatgpt answer The present value of a future amount: a. will always be less than the future amount b. can be calculated precisely if the discount rate and number of periods is known c. is worth less than the future value d. both a. and b. above are trueWhich of the following four options is true? Choices Option 1 Option 2 Option 3 Option 4 Multiple Choice о O O Capital Budgeting Method Payback method Net present value method Internal rate of return method Simple rate of return. Option 1 Option 2 Option 3 Option 4 Does Consider the Time Value Does Consider of Money Cash Flows Yes Yes No Yes No Yes Yes No
- Question 2 You must choose between two investments, X and Y . The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment X Investment Y NPV R44 000 −R22 000 PI 1,945 0,071 IRR 16,00% 8,04% Which investment(s) should you choose, taking all the above criteria into consideration, if the cost of capital is equal to 12% per year? [1] X [2] Y [3] Both X and Y [4] Neither X nor Y [5] Too little information to make a decision 17 DSC1630Discounting an investment’s cash flows using the internal rate of return will result in which of the following? Group of answer choices net present value of one net present value of zero positive net present value negative net present value1. The option is currently A. In-the-moneyB. At-the-moneyC. Out-the-money 2. Determine the In/At/Out- the money by _____ 3, Determine the Intrinsic Value
- 1. The option is currently A. In-the-moneyB. At-the-moneyC. Out-the-money2. Determine the In/At/Out- the money by _____ 3. Determine the Intrinsic ValueQuestion 3.Match the following terms with the appropriate definition.Future ValueTime value of moneyMonetary AssetPresent value of a single amountSimple interestA.Claim to a fixed amount of cash.B.A dollar now is worth more than a dollar later.C.Based on initial investment only.D.Amount today equivalent to a specified future amount.E.Accumulation of an amount with interest.Select all of the time value of money factors that are known in a NPV assessment. O Present value of single-sums O Present value of annuities O Interest rate Number of periods O Future value of single-sums O Future value of annuities