Question: A. lims order B. ficor order C. maximum order D. makket order Which of the following statements is FALSE about interest rates? A. The effective

 A. lims order B. ficor order C. maximum order D. makket
order Which of the following statements is FALSE about interest rates? A.
The effective annual rate indicates the amount of interest that will be
eamed at the end of one year Your firm needs to invest

A. lims order B. ficor order C. maximum order D. makket order Which of the following statements is FALSE about interest rates? A. The effective annual rate indicates the amount of interest that will be eamed at the end of one year Your firm needs to invest in a new delivery truck. The Ite expectancy of the delivery truck is frov years. You can purchase a new delivery truck for an uptront cost of $300,000, or you can lease a truck from the manufocturer for tive years for a monthly lease payment of $6,000 (poid at the end of each month). Your firm can bortaw at 7.2% APR with quarterty compounding The monthly discount rate that you shouid uie to evaluate the truck lease is closest to: A. 0.4771% B. 0.6% C. 0.5964% D. 0.7157% Which of the following statements is FALSE? A. If you are unsure of your cost of capital estmate, it is important to determine how sensitive your analysis is to errors in this essimate. B. If the cost of capital estmate is more than the internal tate of retum (IRR), the net present value (NPV) wil be poofive. C. The internal rate of retum (GRR) can provide information on how sensifve your analysis is to errors in the estimate of your cost of captal D. In general, the difference between the cost of capital and the internal rale of return (IFR) is the maximum amount of estrotion error in the cost of capiul estimate that can exit without altering the orignal decision

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