Difference between the present value and future value

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Reference no: EM131267750

1. The only difference between the present value and future value of a lump sum is the amount of interest that is earned in the intervening time span.

True False

2. Cash inflows include future cash revenue generated from an investment and any future residual value of the asset but exclude any future savings in ongoing cash operating costs resulting from the investment.

True False

Reference no: EM131267750

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