Present Worth
6 practice questionsEngineering EconomicsStep-by-step solutions
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1
Using a 10% discount rate, the present worth of $1,210 received two years from now is:
A.$1,000
B.$1,100
C.$1,210
D.$1,331
2
Holding cash flows fixed, increasing the discount rate makes the present worth of future cash flows:
A.Larger
B.Smaller
C.Unchanged
D.Negative always
3
The present worth of a future sum is found by:
A.Multiplying by
B.Dividing by
C.Adding the interest rate
D.Subtracting depreciation
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