FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 4

6.1 percent
10.2 percent
6.0 percent
5.9 percent
We call the process of earning interest on both the original deposit
and on the earlier interest payments:
computing.
multiplying.
compounding.
discounting.
Which financial statement reports a firm’s assets, liabilities, and
equity at a particular point in time?
Balance sheet
Income statement
Statement of retained earnings
Statement of cash flows
You are trying to pick the least-expensive machine for your company.
You have two choices: machine A, which will cost $50,000 to
purchase and which will have OCF of -$3,500 annually throughout
the machine’s expected life of three years; and machine B, which will
cost $75,000 to purchase and which will have OCF of -$4,900