Question: Question 41 (2 points) When computing a present value, which of the following is TRUE? () You should adjust the discount rate to match the

Question 41 (2 points) When computing a presentQuestion 41 (2 points) When computing a present
Question 41 (2 points) When computing a present value, which of the following is TRUE? () You should adjust the discount rate to match the time period of the cash flows. O You should adjust the future value to match the present value. You should adjust the time period to match the present value. OO You should adjust the cash flows to match the time period of the discount rate. )You should adjust the time period to match the future value. Question 42 (2 points) Why should you approach every problem by drawing a timeline? Timelines allow you to quickly sum cash flows over time. Timelines eliminate the majority of flawed financial decisions. Timelines can be used to schedule events which are yet to occur. Timelines identify events in a transaction or investment that might otherwise be easily overlooked. Timelines give present values at each time period.Question 43 (2 points) A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 4%? $1410 $20,582 $20,548 $34,604 O $25,000 Question 44 (2 points) You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount rate of 49%, and Investment B has a discount rate of 596. Which of the following is TRUE? O The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B. The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B. OOO The present value of cash flows in Investment A is equal to the present value of cash flows in Investment B. The present value of cash flows in Investment A is half the present value of cash flows in Investment B. O No comparison can be made - we need to know the cash flows to calculate the present value

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