Question: CHAPTER 4 QUESTIONS 1. What does application of time value of money (TVM) concepts entail? Why is it necessary to apply TVM concepts when making

CHAPTER 4 QUESTIONS 1. What does application of time value of money (TVM) concepts entail? Why is it necessary to apply TVM concepts when making financial decisions? 2. What cash flow patterns are normally observed in business? Describe the characteristics of each. 3. What is interest compounding? Explain. Everything else the same, would you rather have a savings account that pays interest that is compounded semiannually or one that pays interest with daily compounding? Explain. 4. If a firm's earnings per share grew from $1 to $2 over a 10- year period, the total growth would be 100 percent, but the annual growth rate would be less than 10 percent. True or false? Explain

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