Question

which of the following utilizes the time value of
money

a.payback

b.benefit cost ratio

c.irr

d.none of the above

Answer #1

**Answer is c.irr**

**Explanation:**

Time value of money is an essential concept of business decision making. TVM concepts are used in lot of decisions in business. IRR is the rate at which present value of cash inflows is equal to the present value cash outflows. We do utilize the concept of time value of money in IRR. To calculate IRR, we calculate present value cash inflows and outflows. To know present of any variable, we do require interest rate and period for discounting. So, process of calculating IRR involves time value of money.

Which of the following ignores the Time Value of Money
(TVM)?
Net Present Value (NPV).
Undiscounted Payback Period.
Discounted Payback Period.
Profitability Index (Benefit-Cost Ratio).

When it comes to the Time Value of Money (TVM), which of the
following is considered to be the "Gold Standard?"
Internal Rate of Return (IRR).
Net Present Value (NPV).
Quick Ratio.
Discounted Payback Period

1. Which of the following factors affect the cost of money?
Time preference for consumption
Inflation
Risk
Production Opportunities
All of the above
Choice 1, 2 and 3 only.
2. Which of the following would cause the interest rates to
increase in the near future
The government doubles the amount of money added to the
economy.
The economy starts to slide into a recession.
Concern increases regarding the national security of the US
(i.e. the risk associated with investing in...

"Time Value of Money "
The time value of money is a critical concept to understand in
accounting, especially when dealing with loans, investment
analysis, and capital budgeting decisions. The time value of money
concept can be used to decide which projects to start and what
investments to make. You can also utilize the time value of money
concept in your personal life.
Provide two (2) decisions you may need to make
that could involve the time value of money....

Which of the following investment rules does NOT use the time
value of money concept?
Select one:
a. Internal rate of return
b.The payback period
c.Profitability index
d. Net present value

which of the following capital budgeting rules does not use the
time value of money concept?
a) NPV
b) IRR
c) the discounted payback period
d) the profitability index
E) the payback period
Please explain why
Thank you

1. Which of the following statements is incorrect?
a. The time value of money implies that a dollar received today
is worth more than a dollar received tomorrow.
b. The time value of money implies that the further in the
future you receive a dollar, the more it is worth today.
c. All the answers are correct except one.
d. A dollar today is worth more than a dollar received in the
future.
e. The earnings from compounding drive much...

Which of the following is not a factor that affects the cost of
money?
a. Production opportunities
b. Time preferences for consumption
c. Risk
d. Political environment
e. Inflation

Which of the following generally indicates a positive
change?
The current ratio decreases.
The times-interest-earned ratio decreases.
The number of days' sales in receivables decreases.
The inventory turnover ratio decreases.
Which of the following methods of cost estimation utilizes all
observations and relies on statistical measures to determine the
cost estimation model?
Least-Squares Regression
Linear Programming
High-Low Method
Scatter Diagram
Facility level activities of an organization would not
include:
Building maintenance costs
State property taxes
Machine set-up between jobs
The...

Comparing current returns with future returns, without
accounting for the time value of money, will overstate the relative
value of the future returns.
True
False
The present value of an ordinary annuity is:
The amount that would be paid today in order to receive a
series of unequal payments in the future
The amount that would be paid today in order to receive a
series of equal payments in the future
The amount that would be paid in the future...

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