When Computing the Rate of Return from Selling an Investment

question 118

Multiple Choice

When computing the rate of return from selling an investment, the number of years between the present and future cash flows is an important factor in determining

• A) the annual rate earned.
• B) the annual payments required.
• C) whether the present value or the future value is a cash inflow.
• D) whether the present value or the future value is a cash outflow.