Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Finding the present value and compounding are the same.
• B) A dollar today and a dollar in one year are not equivalent.
• C) If you want to compare or combine cash flows that occur at different points in time, you first need to convert the cash flows into the same units or move them to the same point in time.
• D) The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money.

---

Definitions:

Economic Values

The monetary worth of goods, services, or resources based on their utility and their capacity to satisfy wants or needs.

Wage Increase

An upward adjustment in the pay that employees receive for their work.

Deferred Annuity

An insurance contract designed to generate regular payments starting at a future date, often used as a retirement investment.

Quarterly Payment

Regular payments made every three months on a loan or investment.