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Brealey Principles of Corporate Finance 10e

Brealey Principles of Corporate Finance 10e

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Published by: taductai93 on Jun 22, 2014
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10/09/2014

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Chapter 02 - How to Calculate Present Values
Chapter 02How to Calculate Present Values
 
Multiple Choice Questions
 
1. The present value of $100 expected in two years fro today at a discount rate of !" is# . $11!.!%&. $10'.00C. $100.00(. $').00
 
2. Present Value is defined as# . *uture cash flows discounted to the present at an appropriate discount rate&. +nverse of future cash flowsC. Present cash flow copounded into the future(. ,one of the aove
 
. +f the interest rate is 12"/ what is the 2-year discount factor . 0.)2&. 0.')2)C. 1.2%%(. ,one of the aove
 
%. +f the present value of the cash flow 3 is $2%0/ and the present value cash flow 4 $1!0/ then the present value of the coined cash flow is# . $2%0&. $1!0C. $'0(. $%00
 
2-1
 
Chapter 02 - How to Calculate Present Values
. The rate of return is also called# +5 discount rate6 ++5 hurdle rate6 +++5 opportunity cost of capital . + only&. + and ++ onlyC. +/ ++/ and +++(. ,one of the 7iven ones
 
!. Present value of $121/000 expected to e received one year fro today at an interest rate 8discount rate5 of 10" per year is# . $121/000&. $100/000C. $110/000(. ,one of the aove
 
. 9ne year discount factor at a discount rate of 2" per year is# . 1.2&. 1.0C. 0.'(. ,one of the aove
 
'. The one-year discount factor at an interest rate of 100" per year is# . 1.&. 0.C. 0.2(. ,one of the aove
 
). Present Value of $100/000 that is/ expected/ to e received at the end of one year at a discount rate of 2" per year is# . $'0/000&. $12/000C. $100/000(. ,one of the aove
 
2-2
 
Chapter 02 - How to Calculate Present Values
10. +f the one-year discount factor is 0.'/ what is the discount rate 8interest rate5 per year . 10"&. 20"C. 0"(. ,one of the aove
 
11. +f the present value of $%'0 to e paid at the end of one year is $%00/ what is the one-year discount factor . 0.'&. 1.20C. 0.20(. ,one of the aove
 
12. +f the present value of $20 expected to e received one year fro today is $200/ what is the discount rate . 10"&. 20"C. 2"(. ,one of the aove
 
1. +f the one-year discount factor is 0.)0/ what is the present value of $120 to e received one year fro today . $100&. $)!C. $10'(. ,one of the aove
 
1%. +f the present value of $!00 expected to e received one year fro today is $%00/ what is the one-year discount rate . 1"&. 20"C. 2"(. 0"
 
2-

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