Practice Question 30
Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
Practice Question 34
Which of the following is a similar concept to the compound growth rate of money?
The yield on a bond.
The discount rate on a capital budgeting project.
All of these.
The internal rate of return on an investment.
Practice Question 29
The future value of an annuity is typically used when analyzing
loan amortization schedules.
the price of common stock.
alternative capital budgeting proposals.
What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%. (Round to the nearest dollar.)
Multiple Choice Question 87
Time to attain goal:Elegant Designers have generated sales of $625,000 for the current year. If they can grow their sales at a rate of 12 percent every year, how long will they take to triple their sales? (Round off to the nearest year.)
Practice Question 6
You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?