Examveda

Which of the following statements is most correct?

A. The future value of an annuity due to greater than an otherwise identical ordinary annuity

B. A reduction in the discount rate will increase the future value of an otherwise identical cash flow stream

C. Continuous compounding will result in a higher present value relative to an otherwise identical investment compounded monthly at the same nominal rate

D. The FVIFA (i%, N periods) equals the sum of the PVIF (i%, n) for n = 1 to N periods

Answer: Option A


This Question Belongs to Commerce >> Business Finance

Join The Discussion

Related Questions on Business Finance

Match List-I with List-II and select the correct answer:

List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1