B. increase in compliance costs
C. that it constrains managers ' ability to run the firm
D. that it may discourage development of human capital in the firm
Question 7 of 15
Present Value is defined as:
A. Future cash flows discounted to the present at an appropriate discount rate
B. Inverse of future cash flows
C. Present cash flow compounded into the future
D. None of the above
Question 8 of 15
Present Value of $ 100,000 that is, expected, to be received at the end of one year at a discount rate of 25 % per year is:
B. $ 125,000
1. A. $ 80,000
C. $ 100,000
D. None of the above
Feedback: PV =( 100,000)/( 1 + 0.25) = 80,000
Question 9 of 15