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