Author Question: The present value of 1,000 received at the end of year 1, 1,200 received at the end of year 2, and ... (Read 110 times)

joesmith1212 · **on:** Jul 10, 2018

The present value of 1,000 received at the end of year 1, 1,200 received at the end of year 2, and 1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is ________.

A) 2,500
B) 3,044
C) 6,516
D) 2,856

Question 2

Capital expenditure proposals are reviewed to assess their appropriateness in light of a firm's overall objectives and plans, and to evaluate their economic validity.

Indicate whether the statement is true or false