Question: 5. To use the present value formula PVO - C/r -C/((1+r**T*T)) at time zero, which of the following is correct? There are a finite number

5. To use the present value formula PVO - C/r -C/((1+r**T*T)) at time zero, which of the following is correct? There are a finite number of cash flows in the future There are at least one billion pieces of cash flows The number of cash flows cannot be counted There is no stopping of cash flows in the future None of the above 6. To use the present value formula PVO - C/r -C/((1+r**T*T)) at time zero, which of the following is correct? There are an infinite number of cash flows in the future There are at least one billion pieces of cash flows The number of cash flows cannot be counted The first piece of cash flows starts in the next period None of the above 7. To use the present value following is correct? formula PVO = C/r-C/((1+pt*T*r)) at time zero, which of the The cash flows cannot be different in different time periods There are at least one billion pieces of cash flows The number of cash flows cannot be counted There is no stopping of cash flows in the future None of the above 8. Your friend promises you an annuity of S1 every year for 10 years. The first payment occurs next year, which of the following is right about its present value at time zero if r-10%? $6.14 $6.76 $5.59 No enough information None of the above
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