All Other Things Held Constant,the Present Value of a Given

question 40

True/False

All other things held constant,the present value of a given annual annuity decreases as the number of periods per year increases.

---

Definitions:

Accounting Rate of Return

A financial ratio used to measure the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

After-Tax Net Income

The amount of money a company earns in a given period after all taxes have been deducted from gross income.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.

Future Cash Flows

The projected amounts of money expected to be received or paid out by an entity over future periods as a result of investment, operational, and financing activities.