1. If a project costs $100 and pays $105 in year 1 and $110 in year 2, the maximum interest rate at which the present value of investment exceeds its cost is _________. 2. As real interest rates rise,...

1. If a project costs $100 and pays $105 in year 1 and $110 in year 2, the maximum interest rate at which the present value of investment exceeds its cost is _________.

2. As real interest rates rise, investment spending in the economy _________.

3. Corporate bonds, retained earnings, and issuing stock are the three sources of funds that firms have for investments. _________ (True/False)

4. The Q-theory of investment was developed by _________.

5. The price of a stock can be thought of as the present value of future _________.