(I) A simple loan requires the borrower to repay the principal at the maturity date along with an interest payment
(II) A discount bond is bought at a price below its face value, and the face value is repaid at the maturity date.
A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.
C
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Which of the following is NOT a major strength of the IRR method of capital budgeting?
A) For straight forward projects of negative cash flows followed by positive cash flows, it is consistent with the NPV method of establishing if a project is acceptable or not. B) The IRR method uses time value of money techniques. C) The IRR cutoff interest rate is arbitrary. D) The IRR considers opportunity costs.
The basic value proposition of community providers is:
A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests. B) they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers. C) they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact. D) they increase customers' productivity by helping them get things done faster and more cheaply.