91.Matt needs to compute the present value of $5,000 to be received four years from now. He should multiple $5,000 by the appropriate present value interest factor obtained from the present value of $1 table.
True False
92.The present value of an annuity of $1 table could be constructed using the factors contained in the present value of $1 table.
True False
93.An annuity is a series of equal payments over equal time intervals that earn a constant rate of return.
True False
94.The instantaneous computation power of spreadsheet software makes it ideal for answering "what-if" questions regarding present values.
True False
95.The assumption regarding ordinary annuities is that cash flows occur at the end of each period.
True False
96.In performing capital budgeting analysis that takes time value of money into account, cash flows generated by a capital project are assumed to be reinvested at the project's rate of return.
True False
97.Because of the expense of applying multiple techniques, managers should use a single capital budgeting technique to analyze potential capital investments.
True False
98.A project's net present value can be found by subtracting the cost of the project from the total present value of the future cash flows generated by the project.
True False
99.If a project has a positive net present value, its internal rate of return will exceed the firm's hurdle rate.
True False
100.Investment projects A and B offer equal cash inflows over their lives, but the cash inflows for project A occur sooner than those for project B. The two projects are otherwise identical (the cost is the same, for example) Based on this information, the internal rate of return for A is lower than for B.
True False