Which of the Following Is Used to Compute the Present

question 19

Multiple Choice

Which of the following is used to compute the present value of future cash flows when evaluating investments involving cash flows over time where time elapses between cash payment and receipt?

• A)prime rate plus 1 point.
• B)United States Federal Reserve Interest Rate.
• C)firm's cost of capital.
• D)short-term United States Treasury Bill rate.

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Definitions:

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