Fnce 3001 1 midterm - Study guides, Class notes & Summaries

1. Question: When the discount rate for a project reflects a net present value of zero, this is the definition of an internal rate of return. 2. Question: The net present value will be 1 or greater if an investment produces a return that is the same as the required return. 3. Question: When monthly interest is expressed as only being compounded annually, this is known as the annual percentage rate. 4. Question: What is the future value of $6,500 invested for 7 years at 10% compounded annu...

1. Question: When the discount rate for a project reflects a net present value of zero, this is the definition of an internal rate of return. 2. Question: The net present value will be 1 or greater if an investment produces a return that is the same as the required return. 3. Question: When monthly interest is expressed as only being compounded annually, this is known as the annual percentage rate. 4. Question: What is the future value of $6,500 invested for 7 years at 10% compounded annu...

1. Question: When the discount rate for a project reflects a net present value of zero, this is the definition of an internal rate of return. 2. Question: The net present value will be 1 or greater if an investment produces a return that is the same as the required return. 3. Question: When monthly interest is expressed as only being compounded annually, this is known as the annual percentage rate. 4. Question: What is the future value of $6,500 invested for 7 years at 10% compounded annu...