Answer the following statements true (T) or false (F)
1. A major disadvantage to time value of money is that is only considers one item that changes the value of the dollar such as interest.
2. Cash flow decisions that ignore time value of money will probably not be as accurate as those decisions that do consider time value of money.
3. The present value of a positive future inflow can become negative as discount rates become higher and higher.
4. The interest factor for a future value (FVIF) is equal to (1 + i)n.
5. The formula PV = FV(1 + n)i will determine the present value of $1.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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