e. none of the above 18. The six principles of finance include all of the...

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e. none of the above 18. The six principles of finance include all of the following except: a. Money has a time value. b. Higher returns are expected for taking on more risk Diversification of investments can reduce risk d. Larger capital amounts are charged higher interest c. 19. a. b. C. d. $1,000 invested today at 6% interest would be worth one year from now $1,600 $1,060 $1,160 $1,006 20. a. Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the greater risk. b. higher cost longer useful life. d. more complex designs. c

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