To Measure Value,the Concept of Time Value of Money Is

question 116

Multiple Choice

To measure value,the concept of time value of money is used

• A) to determine the interest rate paid on corporate debt.
• B) to bring the future benefits and costs of a project, measured by its expected profits, back to the present.
• C) to bring the future benefits and costs of a project, measured by its cash flows, back to the present.
• D) to ensure that expected future profits exceed current profits today.

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Definitions:

Major Causes

Principal factors or reasons that contribute significantly to the occurrence of a condition, event, or situation.

Iconic Memory

Visual sensory memory, lasting only a fraction of a second.

Echoic Memory

Auditory sensory memory, lasting only 2 to 4 seconds.

Capacity

The maximum amount that something can contain or produce, or the ability to perform, understand, or absorb something.