Net Present Value Can Be Calculated for Any Time Period

question 59

Multiple Choice

Net Present Value can be calculated for any time period provided that

• A) both the interest rate and the time period correspond to the period being examined.
• B) the interest rate is stipulated as an annual percentage but the time period corresponds to the period being examined.
• C) the time period is stipulated as an annual period but the interest rate corresponds to the period being examined.
• D) a spreadsheet is used for the calculation since this cannot be computed on a financial calculator.

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Definitions:

Cash Balance

The amount of cash that a company, individual, or account has available at any given point in time.

Pre-numbered Documents

Documents that are sequentially numbered ahead of time to help ensure completeness and control over processes like inventory, purchasing, and payroll.

Time Lags

Delays between the initiation of an action and its effect or outcome, often encountered in economic policies or financial transactions.

Errors

Mistakes or inaccuracies in financial information or records, which may require correction through adjustments.