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Expert Sissy
Expert Sissy, Tutor
Category: Homework
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Experience:  Familiar with Axia, and UOP. Working on Masters Degree in Business Administration (MBA)
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1. A securitys value is equal to the present value of its

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1. A security's value is equal to the present value of its future cash flows.
True
False
2. The time value of money is based on the fact that:
(A) a sum of money placed in your hands today is worth MORE than the same sum promised some time in the future

(B) a sum of money in your hands today, is worth LESS than the same sum promised some time in the future

(C) a sum of money in your hands some time in the future is worth LESS than the same sum of money in your hands today

(D) a and c

3. The present value of an investment today, is the sum of money:

A. required today that would grow, over time, to an expected future value
B. referred to as the discounted value of some expected future value
C. which is distinguished from the investments's future value
D. all of the above
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