FINANCE 301 - CH 6 | Questions with 100% Verified Answers |
Latest Update 2026/2027
Question: The present value of a series of ______ cash flows is the amount
you would need today to exactly duplicate those future cash
flows.
Answer:
future
Question: A typical investment has a large cash _____ at the beginning and
then a cash _______ for many years.
Answer:
outflow; inflows
Question: A single cash flow is also known as a:
Answer:
lump sum
Question: Which of the following processes can be used to calculate
future value for multiple cash flows?
Discount all of the cash flows back to Year 0
Calculate the future value of each cash flow first and then add
them up
Compound the accumulated balance forward one year at a
time
Find the future value of a single lump sum amount
Answer:
Calculate the future value of each cash flow first and then add them up;
Compound the accumulated balance forward one year at a time
Question: In almost all multiple cash flow calculations, it is implicitly
assumed that the cash flows occur at the _____ of each period.
Answer:
end
Question: The present value of a series of future cash flows is the
amount you would need today to _____.
Answer:
exactly duplicate those future cash flows
, Question: Most investments involve _____ cash flows.
Answer:
multiple
Question: When valuing cash flows, you can either value multiple cash
flows or a single sum, also known as a(n) _____ sum.
Answer:
lump
Question: The formula for the ______ present value is C x [(1-Present value
factor)/r]
Answer:
annuity
Question: One method of calculating future values for multiple cash
flows is to compound the accumulated balance forward _____ at
a time.
Answer:
one year
Question: In the standard present and future value tables, and in all the
default settings on a financial calculator, the assumption is that
cash flows occur at the ____ of each period.
Answer:
end
Question: True or false: The formula for the present value interest factor
for annuities is
PVIF = { 1 - [1/(1+r)*t] } / r
Annuity present value factor
Answer:
True
Question: The present value of a series of ____ cash flows is the amount
you would need today to exactly duplicate those future cash
flows.
Answer:
future
Latest Update 2026/2027
Question: The present value of a series of ______ cash flows is the amount
you would need today to exactly duplicate those future cash
flows.
Answer:
future
Question: A typical investment has a large cash _____ at the beginning and
then a cash _______ for many years.
Answer:
outflow; inflows
Question: A single cash flow is also known as a:
Answer:
lump sum
Question: Which of the following processes can be used to calculate
future value for multiple cash flows?
Discount all of the cash flows back to Year 0
Calculate the future value of each cash flow first and then add
them up
Compound the accumulated balance forward one year at a
time
Find the future value of a single lump sum amount
Answer:
Calculate the future value of each cash flow first and then add them up;
Compound the accumulated balance forward one year at a time
Question: In almost all multiple cash flow calculations, it is implicitly
assumed that the cash flows occur at the _____ of each period.
Answer:
end
Question: The present value of a series of future cash flows is the
amount you would need today to _____.
Answer:
exactly duplicate those future cash flows
, Question: Most investments involve _____ cash flows.
Answer:
multiple
Question: When valuing cash flows, you can either value multiple cash
flows or a single sum, also known as a(n) _____ sum.
Answer:
lump
Question: The formula for the ______ present value is C x [(1-Present value
factor)/r]
Answer:
annuity
Question: One method of calculating future values for multiple cash
flows is to compound the accumulated balance forward _____ at
a time.
Answer:
one year
Question: In the standard present and future value tables, and in all the
default settings on a financial calculator, the assumption is that
cash flows occur at the ____ of each period.
Answer:
end
Question: True or false: The formula for the present value interest factor
for annuities is
PVIF = { 1 - [1/(1+r)*t] } / r
Annuity present value factor
Answer:
True
Question: The present value of a series of ____ cash flows is the amount
you would need today to exactly duplicate those future cash
flows.
Answer:
future
