Question

Time value of money is closely associated with the idea of: ООО Investing in a variety of different securities A dollar today is worth more than a dollar tomorrow Inability to pay out profits as opposed to cash Security prices quickly reflect new information

please answer all the multiple choice quesrions

Answer 1

Answer 1)

TVM is concerned with Value of Dollar today is worth more than the value of Dollar tomorrow.

Option B is correct.

Answer 2)

The statement is True. The Cash Flow after the payback Period are irrelevant.

Answer 3)

Present Value = Future Value / (1+r)^n

r = 0.05 /4 = 0.0125

n = 9 years * 4 = 36

= 1800 / (1+0.0125)^36

= 1150.94

Option B is correct.

Answer 4)

Systematic Risk is the risk that will affect the whole market and Recession affects the whole market.

Therefore, Option D is correct.

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.