« previous next »

Author Question: Even with an interest rate of 0.0, the future value of a 5-year 800 annual annuity will be greater ... (Read 83 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jul 10, 2018
Even with an interest rate of 0.0, the future value of a 5-year 800 annual annuity will be greater than the present value of the same annuity.
 
  Indicate whether the statement is true or false.

Question 2

The risk-adjusted discount rate for a replacement decision will be less than the rate used by the
  same firm when considering a new product line.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: The present value and future value will be the same with an interest rate of 0.0.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a
Hospitalization per year Hospitalization per year
The rate of global emissions is rising rapidly, especially in India and China The rate of global emissions is rising rapidly, especially in India and China
Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ... Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ...
Dragon Chinese new year 2023 Dragon Chinese new year 2023
Chinese Dragon new year 2024 Chinese Dragon new year 2024
Video: HDL (high density lipoprotein)

For a complete list of videos, visit our video library