1. The “discount rate” used in a present value calculation may be referred to as
A) the opportunity cost.
B) the discount rate.
C) the required return.
D) the cost of capital.
E) A and B and C and D
2. Annuities
A. are equally-spaced cash flows.
B. consist of payments of equal amount.
C. occur over a specified time-frame.
D. A and B and C.
E. A and C.