The present value of a single payment can be represented as ____.   a. PV0 = FVn(PVIFi,n)   b. PV0 = FVn(PVIFAi,n)   c. PV0 = FVn[1/(1 - i)n]   d. None of these are correct

Q: lue (NPV) anc g decisions? Pl

A: Introduction : Net present value  can be understood as the value which depicts the actual worth…

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Q: he net present value is incorrect. Can you try the problem again?

A: Net Present Value (NPV) The difference between the present value of the cash outflow and inflow at…

Q: The CAPM model can be used to derive the cost сapital. A. Equity B. Borrowed С. Total D. Unlimited

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Q: The value of a series of payments is similar to the maturity value in a compounding transaction.…

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Q: What are the most frequent uses of contingent payments?

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Q: False. Please Justify. The discount function [a(t)]^−1 is generally a decreasing

A: Decreasing function is which whose value go on decreasing with increase in value of variable.

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

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A: The Gradient Arithmetic Worth is an important concept that determines the present value, annual…

Q: Can we compute the IRR for each option without knowing the revenue figure? Why?

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Q: None

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Q: Question. What are Operating and non-operating expence?

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A: Account: It implies to a record that is maintained so as to keep the data related to the financial…

Q: Which one of the following is the annuity present value formula? OCx ((1 [1/(1+r)t]} -r) OCx ((1…

A: Solution:-When an equal amount is paid each period, it is known as annuity.

Q: What is limitation of Payback period, Net Present Value (NPV) and Internal rate of return (IRR).…

A: i) Payback period: Payback period is the expected time period which is required to recover the cost…

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Q: Give an example assuming that  the Compounding Period equals to Payment Period?

A: The representation on the basis of assumption:

Q: e following statements about annuities are true? Ch hnuity due earns more interest than an ordinary…

A: Annuities are instruments that involve fixed payments. There are mainly two types of annuities i.e.…

Q: What is difference between PERIODIC FIFO and PERPETUAL FIFO.

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Q: The term (1 + i)" is called a factor and is known as the single-payment compound amount factor.…

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Q: The modified internal rate of return (MMIR) is the discount rate that forces the _____.

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A: Answer

Q: __________ is the interest rate that makes NPV equal to zero when it is used as the discount rate

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A: Given  Demand function for q1 = f(p1, p2) Demand function for q2= g(p1, p2) where (p1, p2, q1, q2)…

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Q: Why will the fixed-charge-coverage ratio always be equal to or less than times interest earned?

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Q: Explain in words the following future- value formula: F₁ = P(1 + r)". n

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Q: Internal Rate of Return is the discount rate that sets NPV to 0. True or false?

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