A two-year investment of $3500 is made today at an annual interest rate of 5.75%. Which of the following statements is true?
A) The future value would be greater if the interest rate was higher.
B) The present value would be greater if the interest rate was higher.
C) The future value would be greater if the interest rate was lower.
D) The future value does not change as the interest rate changes.
Answer: A
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______ consists of a small group of workers who come together for a set amount of time to discuss and resolve specific issues.
A. cross-functional team B. self-managing team C. problem-solving team D. virtual team
If an investor buys a bond and holds it until it matures, the average rate of return the investor will earn per year is called the bond's:
A. coupon rate. B. yield to maturity. C. yield to call. D. current yield. E. capital gains yield.
When selecting a location for a meeting, select a place that is convenient for all of the attendees. _________________________
Answer the following statement true (T) or false (F)
Solar Confectionary develops a new candy bar and plans to sell each bar for $1
Solar predicts that 1 million candy bars will be sold in the first year if the new candy bar is produced and sold, and includes $1 million of incremental revenues in its capital budgeting analysis. A senior executive in the company believes that 1 million candy bars will be sold, but lowers the estimate of incremental revenue to $700,000. What would explain this change? A) a higher selling price for the new candy bars B) cannibalization of 300,000 of Solar Confectionary's other candy bars C) a lower discount rate D) excessive marketing costs to sell the 1 million candy bars