The Net Present Value (or NPV) criteria for capital budgeting ...

[cdr_15]

The Net Present Value (or NPV) criteria for capital budgeting decisions assumes that expected
  future cash flows are reinvested at ________,
 
  and the Internal Rate of Return (or IRR) criteria
  assumes that expected future cash flows are reinvested at ________.
  A) the internal rate of return; the internal rate of return
  B) the internal rate of return; the firm's discount rate
  C) the firm's discount rate; the internal rate of return
  D) Neither criteria assumes reinvestment of future cash flows.

Question 2

Your department at work places 10,000 every year-end into an account earning 5. The money is used when the corporate office fails to fully finance your profitable projects.
 
  The money has not been touched since the first deposit was made exactly five years ago. If the most recent deposit was made today, how much money is currently in the account?
  A) 55,256.31
  B) 60,000.00
  C) 65,256.31
  D) 68,019.13

[huda]

Answer to Question 1

C

Answer to Question 2

Answer: D
Explanation: D) FV = PMT  = 10,000  = 68,019.13.
MODE = END
INPUT 6 5 0 -10,000 ?
KEY N I/Y PV PMT FV
CPT 68,019.13