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Author Question: The interest rate used to compute the present value of future cash flows refers to: A) discount ... (Read 193 times)

KWilfred

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on: Jul 7, 2018
The interest rate used to compute the present value of future cash flows refers to:
 
  A) discount rate.
  B) investment rate.
  C) transfer rate.
  D) future cash flow rate.
  E) valuation rate.

Question 2

Which of the following is NOT a process modeling deliverable?
 
  A) A context data-flow diagram
  B) Thorough descriptions of each DFD component
  C) DFDs of the current physical system
  D) An entity relationship diagram
  E) DFDs of the new logical system


pikon

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Reply #1 on: Jul 7, 2018
Answer to Question 1

A
Explanation: A) The interest rate (n in the example) at which money can be borrowed or invested, the cost of capital, is called the discount rate for TVM calculations. For example, PVn = Y  1/ (1 + i)n
CL

Answer to Question 2

D
Explanation: D) In structured analysis, the primary deliverables from process modeling are a set of coherent, interrelated data-flow diagrams.
CL


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