The basic concept involved in time value of money calculations is that

a.it is better to receive a dollar today than to receive a dollar in the future.

b.incremental revenues must exceed incremental costs.

c.you get what you measure.

d.revenue must be earned in order for net income to be generated

Managers may be discouraged from using present value techniques for evaluating investments because of the way in which their own performance is evaluated.

True

False

In which of the following situations will an annuity table be useful?

I.Calculating the net present value of an investment with equal cash flows for the first nine years, but a different flow in year 10

II.Calculating the internal rate of return of an investment with unequal cash flows each year

III. Calculating the net present value of an investment with an equal cash flow in years one through four, and a different equal cash flow in years 5 through 10

a.I, II, and III

b.II and III

c.I and III

d.I and II

Riskier investments demand lower rates of return.

True

False