Quiz Ch 05 – T/F Time Line with Mixed Cash Flows
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: A time line can display a combination of annuity payments and varying amounts.
True or false: A time line can display a combination of annuity payments and varying amounts.
True or false: Time lines can be formulated for annuities with payments occurring either at the beginning or end of periods.
True or false: In the absence of risk, when money has time value, it’s not possible for the present value of a given amount to be greater than its future value.
True or false: When disregarding risk and considering the time value of money, the future value of a specified amount cannot surpass its present value.
True or false: One dollar tomorrow holds a higher value than one dollar today.
True or false: “Constant dollars” pertains to uniform loan amortization payments.
True or false: A mortgage loan is an instance of an amortizing loan, where a portion of each monthly payment covers interest, and the rest diminishes the loan balance.
True or false: Soft rationing may be employed as a means to control managerial behavior.
True or false: There is only one unique value for the Internal Rate of Return (IRR) associated with any sequence of cash flows.
True or false: When calculating present value, we utilize an interest rate, referred to as “r,” as the discount rate to discount the future value.