Using a discount rate of 10 percent, the present value of a 2,500 ...

[jCorn1234]

Using a discount rate of 10 percent, the present value of a 2,500 benefit received five years from now is 1,552.30.
 
  Indicate whether the statement is true or false

Question 2

Which of the following is NOT a result of reuse?
 
  A) Higher-quality software
  B) Lower defect rates
  C) Decreased maintenance costs
  D) Higher defect rates
  E) Increased maintenance costs

[josephsuarez]

Answer to Question 1

TRUE
Explanation: PV1 = 2,500  1/(1+.10)5 = 2,500  .620921323 = FV1= 1,552.30
CL

Answer to Question 2

D
Explanation: D) Reuse should increase programmer productivity, decrease development time, and result in higher-quality software with lower defect rates, decreasing maintenance costs.