An investment should be undertaken
A. any time the present value of the expected income stream associated with the investment is positive.
B. if the present value of the costs of the investment project exceed the present value of the expected returns from the investment project.
C. if the present value of the expected income stream associated with the investment is less than the full cost of the investment project.
D. if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.
Answer: D
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Are checking accounts money?
A. No, because checking accounts cannot be traded for goods and services. B. Yes, because checking accounts can be used to buy goods and services. C. No, because checking accounts are not physical money. D. Yes, because the value of a checking account is measured in dollars.
If the interest rate is 5 percent, what is the present value of $100 that will be received 3 years from now?
A) $90.70 B) $86.38 C) $115.00 D) $13.62