Fundamentals of Financial Management Concise Edition 8th Test latest 2023 Fundamentals of Financial Management Concise Edition 8th Test latest 2023 The Value of Money Note that there is an overlap between the T/F and multiple-choice questions, as some of

Fundamentals of Financial Management Concise Edition 8th Test latest 2023 Fundamentals of Financial Management Concise Edition 8th Test latest 2023 The Value of Money Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used in multiple-choice questions. Multiple Choice: True/False 1. Starting to invest early for retirement increases the benefits of compound interest. a. True b. False ANSWER: True 2. Starting to invest early for retirement reduces the benefits of compound interest. a. True b. False ANSWER: False 3. A time line is meaningful even if all cash flows do not occur annually. a. True b. False ANSWER: True Fundamentals of Financial Management Concise Edition 8th Test latest 2023 4. A time line is not meaningful unless all cash flows occur annually. a. True b. False ANSWER: False 5. Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly. a. True b. False ANSWER: True 6. Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly. a. True b. False ANSWER: False 7. Time lines can be constructed for annuities where the payments occur at either the beginning or the end of the periods. a. True b. False ANSWER: True 8. Time lines cannot be constructed for annuities unless all the payments occur at the end of the periods. a. True b. False ANSWER: False 9. Some of the cash flows shown on a time line can be in the form of annuity payments while others can be uneven amounts. a. True b. False ANSWER: True 10. Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts. a. True b. False ANSWER: False 11. If the discount (or interest) rate is positive, the present val