Which of the following is not one of the intuitive reasons that a cash flow in...

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Finance

Which of the following is not one of the intuitive reasons thata cash flow in the future is worth less than a similar cash flowtoday?
a.
When there is money inflation, the value of currency decreasesover time.
b.
A promised cash flow in the future may not be received (there isrisk).
c.
People prefer current consumption to future consumption.
d.
Future income may not be the same as income today.
Which of the following is true about the present value of aregular annuity when compared to the present value of an annuitydue with the same payments and interest rate?
a.
The present value of the annuity due will always be less thanthe present value of the regular annuity because the regularannuity has one less period of discounting.
b.
The present value of the annuity due will always be greater thanthe present value of the regular annuity because the regularannuity has one less period of discounting.
c.
The present value of the annuity due will always be greater thanthe present value of a regular annuity because the annuity due hasone less period of discounting.
d.
The present value of the annuity due will always be less thanthe present value of a regular annuity because the annuity due hasone less period of discounting.
As the frequency of discounting increases...
a.
the present value of an annuity gets larger.
b.
the present value of a single sum in the future getssmaller.
c.
the present value of a single sum in the future get larger.
d.
the future value of a single sum today gets smaller.
When calculating a present value using a higher interest rate inthe equation will cause the present value to...
a.
increase.
b.
possibly increase or decrease.
c.
decrease.
d.
not change
What is the PV of $10,000 expected to be received 5 years fromnow assuming an 8% annual interest rate?
a.
$6,867.49
b.
$6,768.39
c.
$6,805.83
d.
$5,402.69

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Which of the following is not one of the intuitive reasons that a cash flow in the future is worth less than a similar cash flow today a When there is money inflation the value of currency decreases over time See Answer

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Which of the following is not one of the intuitive reasons thata cash flow in the future is worth less than a similar cash flowtoday?a.When there is money inflation, the value of currency decreasesover time.b.A promised cash flow in the future may not be received (there isrisk).c.People prefer current consumption to future consumption.d.Future income may not be the same as income today.Which of the following is true about the present value of aregular annuity when compared to the present value of an annuitydue with the same payments and interest rate?a.The present value of the annuity due will always be less thanthe present value of the regular annuity because the regularannuity has one less period of discounting.b.The present value of the annuity due will always be greater thanthe present value of the regular annuity because the regularannuity has one less period of discounting.c.The present value of the annuity due will always be greater thanthe present value of a regular annuity because the annuity due hasone less period of discounting.d.The present value of the annuity due will always be less thanthe present value of a regular annuity because the annuity due hasone less period of discounting.As the frequency of discounting increases...a.the present value of an annuity gets larger.b.the present value of a single sum in the future getssmaller.c.the present value of a single sum in the future get larger.d.the future value of a single sum today gets smaller.When calculating a present value using a higher interest rate inthe equation will cause the present value to...a.increase.b.possibly increase or decrease.c.decrease.d.not changeWhat is the PV of $10,000 expected to be received 5 years fromnow assuming an 8% annual interest rate?a.$6,867.49b.$6,768.39c.$6,805.83d.$5,402.69

	a.	When there is money inflation, the value of currency decreasesover time.
	b.	A promised cash flow in the future may not be received (there isrisk).
	c.	People prefer current consumption to future consumption.
	d.	Future income may not be the same as income today.

	a.	The present value of the annuity due will always be less thanthe present value of the regular annuity because the regularannuity has one less period of discounting.
	b.	The present value of the annuity due will always be greater thanthe present value of the regular annuity because the regularannuity has one less period of discounting.
	c.	The present value of the annuity due will always be greater thanthe present value of a regular annuity because the annuity due hasone less period of discounting.
	d.	The present value of the annuity due will always be less thanthe present value of a regular annuity because the annuity due hasone less period of discounting.

	a.	the present value of an annuity gets larger.
	b.	the present value of a single sum in the future getssmaller.
	c.	the present value of a single sum in the future get larger.
	d.	the future value of a single sum today gets smaller.

	a.	increase.
	b.	possibly increase or decrease.
	c.	decrease.
	d.	not change