Reference no: EM132904703

Problem 1: Assume that the present value of the investment is 1000 and future value is 1403 after five years What is the annual interest rate (%i)?

a) 10%

b) 9%

c) 8%

d) 7%

e) 6%

Problem 2: Which of the following technique would be used for a project that has non-normal cash flows?

a) Internal rate of return

b) Multiple internal rate of return

c) Modified internal rate of return

d) Net present value

Problem 3: A capital budgeting technique that is NOT considered as discounted cash flow method is

a) Payback period

b) Internal rate of return

c) Net present value

d) Profitability index