Question

1) The use of funds deposited in a savings account intended for a project constitutes a...

1) The use of funds deposited in a savings account intended for a project constitutes a form of equity financing. True or False ?

2) The MARR (minimum acceptable rate of return) is not calculated the same way as the rate of return. True or false ?

3) An arithmetic gradient refers to a series of cash flows in which values ​​change by the same amount with each interest period. True or False ?

4)The use of funds deposited in a savings account intended for a project constitutes a form of equity financing. True or false ?

Homework Answers

Answer #1

1). True , deposited in saving bank account can be used by companies as a loan to collect equity financing.

2). True , both are calculated differently.

3). True, an arithmetic gradient series is a cash flow series that either increases or decreases by a constant amount each period. ... If you estimate that total costs will increase by $200 each year, the amount the second year is $2700, the third $2900, and so on to year n , when the total cost is 2500 ( n - 1)200.

4).True , deposited in saving bank account given to companies as loan for collecting equity financing from public.

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