Answer the following statement(s) true (T) or false (F)

1. The future value (FV) of a dollar is its present value (PV) plus the opportunity cost of not using that dollar in the present period.
2. The term, 1/(1 + r)t is known as the discount rate, where r represents the discount factor.
3. Present value determination is a procedure that corrects a value for the rate of inflation.
4. The discount rate used for public policy decision making is called the social discount rate.
5. Deflating refers to the process of converting a real value into its nominal value.

1. True
2. False
3. False
4. True
5. False