In calculating the net present value of an investment in equipment, the required investment and its residual value should be subtracted from the present value of all future cash inflows

Insurers offering variable annuities charge a number of fees and expenses. One category of fees and expenses is charged to cover the cost of record keeping, paperwork, and periodic reports to annuity owners. This expense is the

A) investment management charge. B) surrender charge. C) administrative charge. D) front-end load.

Which of the following statements regarding the taxation of individual annuities is (are) true?

I. The exclusion ratio is the percentage of the annuity income that is taxable. II. After the net cost of the annuity has been paid to the annuitant, the total annuity payment is taxable. A) I only B) II only C) both I and II D) neither I nor II