The discount rate used in present value calculation

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1. The “discount rate” used in a present value calculation may be referred to as

A) the opportunity cost.

B) the discount rate.

C) the required return.

D) the cost of capital.

E) A and B and C and D

2. Annuities

A. are equally-spaced cash flows.

B. consist of payments of equal amount.

C. occur over a specified time-frame.

D. A and B and C.

E. A and C.

Reference no: EM132006078

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