Question 1
Compounding interest more frequently than annually causes a change in
◦ the annual discount rate.
◦ required rate of return.
◦ the number of periods to be used.
◦ the time period during which the asset is to be used in operations.
Question 2
The relationship between the discount rate and the present value is
◦ inverse.
◦ proportional.
◦ sporadic.
◦ constant.