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Chapter 1 / Exercise 79
Elementary and Intermediate Algebra: Algebra Within Reach
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65. Leo received \$7,500 today and will receive another \$5,000 two years from today. He will invest these funds when he receives them and expects to earn a rate of return of 11.5 percent. What value does he expect his investments to have five years from today? A. \$18,758.04 B. \$18,806.39 C. \$19,856.13 D. \$20,314.00 E. \$19,904.36
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Chapter 1 / Exercise 79
Elementary and Intermediate Algebra: Algebra Within Reach
Larson Expert Verified
FINA4315-001 Advanced Business Financial Analysis Spring 2017 15 CH05 NPV and other Investment Rules 66. The difference between the present value of an investment’s future cash flows and its initial cost is the:
67. Which statement concerning the net present value (NPV) of an investment or a financing project is correct?
68. An investment is acceptable if the payback period:
69. The length of time required for a project's discounted cash flows to equal the initial cost of the project is called the: A. net present value. B. discounted net present value. C. payback period. D. discounted profitability index. E. discounted payback period.
70. The discount rate that makes the net present value of an investment exactly equal to zero is called the:
71. The possibility that more than one discount rate will make the NPV of an investment equal to zero presents the problem referred to as:
FINA4315-001 Advanced Business Financial Analysis Spring 2017 16 72. The present value of an investment's future cash flows divided by the initial cost of the investment is called the:
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