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 False statement: For uniform series with payment period greater than compounding period and no inter-period interest, move cash flows to match compounding period

Economics Dec 15, 2020

 False statement: For uniform series with payment period greater than compounding period and no inter-period interest, move cash flows to match compounding period. than compounding period and no inter-period interest, move cash Corrected Statement: For uniform series with payment period flows to match compounding period. 2. [2 pts. ] False statement: Payment frequency is the number of times compounding occurs within the interest period t. Corrected Statement: frequency is the number of times compounding occurs within the interest period t. 3. [ 2 pts. ] False statement: Barrowing rate is the rate at which extra funds in a project are invested external to the project. Corrected Statement: rate is the rate at which extra funds in a project are invested external to the project. 4.[ 2 pts. ] False statement: The range of ROR values can vary from - infinity to + infinity. Corrected Statement: The range of ROR values can vary from to + infinity. - 100% compounding smaller payment investment + infinity present barrowing

Expert Solution

1) Corrected Statement: For uniform series with payment period flows to match compounding period SMALLER than compounding period and no inter-period interest, move cash.

2) Corrected Statement: COMPOUNDING frequency is the number of times compounding occurs within the interest period t.

3) Corrected Statement: INVESTMENT rate is the rate at which extra funds in a project are invested external to the project.

4) Corrected Statement: The range of ROR values can vary from -100% to +infinity.

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