Author Question: Current assets values may be estimated by calculating (Read 33 times)

jlmhmf · **on:** Apr 25, 2021

Question 1

Consider two present value factors: one for n = 5 years and one for n = 15 years. If the interest rate falls from i = 10% to i = 5%, which rises by more in percentage terms?
◦ PVIF for n = 5
◦ PVIF for n = 15

Question 2

Current assets values may be estimated by calculating
◦ the future value of all cash flows expected from the asset.
◦ a sum of all cash flows forecasted from the use and/or sale of the asset.
◦ the present value of all future cash flows expected from the asset.
◦ the cash flows expected from the asset without adjusting for the time value of money.
◦ only the present value of the cash flows to be received in the first two years since later cash flows are too uncertain to be considered.

honnalora · **Reply #1 on:** Apr 25, 2021

A FREE account is required to view all solutions!

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.

Answer Preview

Only 35% of students answer this correctly