If a Term Deposit Offers an Interest Rate of 10

question 31

Multiple Choice

If a term deposit offers an interest rate of 10% p.a. ,compounding continuously,how much will an initial investment of $50 000 be worth after one year?

• A)$55 258
• B)$135 914
• C)$62 519
• D)$98 352

Calculate the Net Present Value (NPV) of a project and understand its importance in project evaluation.

Grasp the fundamentals of capital structure, including the effects of debt-to-equity ratios on financing.

Apply the cost of capital concepts, including the weighted average cost of capital (WACC), in project evaluation.

Understand and calculate the cost of equity and debt financing.

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Definitions:

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