If the Time Value of Money Techniques Are Used Correctly

question 53

Multiple Choice

If the time value of money techniques are used correctly, the present value of cash flows far in the future will be

• A)lesser than the present value of the same amount of cash flows in the present.
• B)greater than the present value of the same amount of cash flows in the present.
• C)same as the future value of the same amount of cash flows in the present.
• D)greater than the future value of the same amount of cash flows in the present.

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Definitions:

Repair Shop

A business dedicated to fixing and maintaining vehicles, electronics, or other machinery.

Goods In Bailment

Purchased goods that are in some kind of storage under the control of a third party, such as a warehouseman.

Storage

The action or method of storing goods, data, or information for future use.

Physical Possession

The actual holding or control of property, as opposed to constructive possession which is the legal right to control.