09 Jun MANAGERIAL FINANCE DECISION MKNG profile
1- o find the present value of an uneven series of cash flows, you must find the PV’s of the individual cash flows and then sum them. Annuity procedures can never be of use, even when some of the cash flows constitute an annuity, because the entire series of cash flows is not an annuity. True or false? Explain.
2- What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is a single number used in all situations? Explain.
3- Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays 5% interested compounded daily? Explain.
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