Utilizes the time value of money

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1. Which of the following utilizes the time value of money?

a. payback b. benefit cost ratio c. IRR d. none of the above

2. residual cash flows are estimated when:

a. the useful lives of alternatives are different b. one asset has a shorter economic life than alternatives c. one asset has a longer economic life than alternatives d. a and b. e. a, b, and c

3. Robeson Corporation has current earnings-share of $3.00. The implied price-earning ratio is 20. The present value of future cash flow per share for Robeson is

a. $40 b. $50 c. $60 d. none

Reference no: EM131962326

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