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Cash Flows Growth Rate and Value of Assets

4. An interest or growth rate for a stream of cash flows can be found by first doing which of the following?

a. Dividing the earliest value by the most recent value and using the table of the present value interest factors for one dollar

b. Adding the earliest value by the most recent value and using the table of the present value interest factors for one dollar

c. Multiplying the earliest value by the most recent value and using the table of the present value interest factors for one dollar

d. Subtracting the earliest value by the most recent value and using the table of the present value interest factors for one dollar

e. Summed up the earliest value by the most recent value and using the table of the present value interest factors for one dollar

5. The value of any asset depends upon which the following?

a. Cash inflow and the timing of the cash inflow

b. Required return and a known interest rate

c. Returns, timing, a measurement of risk

d. Owners timing of purchase, a measure of risk

e. Coupon interest rate, time period

Solution Preview

4. An interest or growth rate for a stream of cash flows can be found by first doing which of the following?

a. Dividing the earliest value by the most ...

Solution Summary

This solution identifies the correct answer for finding the interest/growth rate of the cash flows and factors that affect the asset value.

$2.19