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The rate of return, discount rate, hurdle rate, and the opportunity cost of capital all have the same meaning.

INSTRUCTIONS TO CANDIDATES
ANSWER ALL QUESTIONS

QUESTION 1

The rate of return, discount rate, hurdle rate, and the opportunity cost of capital all have the same meaning.

True

False

QUESTION 2

A dollar today is worth more than a dollar tomorrow if the interest rate is positive.

True

False

QUESTION 3

If you are paid $1,000 at the end of each year for the next five years, what type of cash flow did you receive? An annuity

An annuity due

A perpetuity

Uneven cash flow stream

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