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Author Question: When the rate of return is equal to the discount rate (Read 35 times)

olivia_rose

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on: Mar 29, 2022

Question 1

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is
◦ $10,000/1.25.
◦ $10,000(1.05)5.
◦ $10,000/(1.05)5.
◦ $10,000 (1.05)1/5.

Question 2

When the rate of return is equal to the discount rate
◦ the present value of an investment's benefits must be greater than its cost.
◦ the cost of an investment equals the sum of its benefits.
◦ the cost of an investment equals the future value of its benefits.
◦ the cost of an investment equals the present value of its benefits.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by olivia_rose on Mar 29, 2022

Kevin5!

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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olivia_rose

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Reply 2 on: Mar 29, 2022
Great answer, keep it coming :)

marict

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Reply 3 on: Yesterday
Excellent

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