Money is invested at fixed annual rate of return

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Reference no: EM132061320

1. The future value of a lump sum of money invested today _______ as the annual rate of return decreases and ______ the fewer years the money remains invested. Assume the money is invested at a fixed annual rate of return and interest is compounded annually.

increases; decreases

increases; increases

decreases; increases

decreases; decreases

2. If a capital investment project has an NPV > $0, then its IRR is ______ the firm's required rate of return (cost of capital).

less than

No answer text provided.

equal to

greater than

Reference no: EM132061320

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