(a)$64,996 (b)$57,379 (c)$50,184 (d)$16,249 Answer:(b) 14.A rule of thumb with using the internal rate of return is to invest in a project if the IRR is the opportunity cost of capital. (a)greater than (b)less than (c)less than or equal to (d)one-half of Answer:(a) 15.The NPV is the difference between the value of all cash inflows minus the value of all current and future cash outflows (a)future;present;present (b)present;future;present (c)present;present;future (d)present;future;future Answer:(b) 16.If you purchased a $10,000 certificate of deposit today with an APR of 12%,with monthly compounding,what would be the CD worth when it matures in 6 years? (a)$56,340 (b)$20,468 (c)$19,738 (d)$5,066 Answer:(b) 17.The real interest rate is 3.2%,the nominal interest rate is 8.36%and the rate of inflation is 5%. We are interested in determining the future value of $200 in 35 years time.What is the future price level? a)2.91 b)3.012 c)5.516 d)16.61 Answer:(c) 4-44-4 (a) $64,996 (b) $57,379 (c) $50,184 (d) $16,249 Answer: (b) 14. A rule of thumb with using the internal rate of return is to invest in a project if the IRR is ________ the opportunity cost of capital. (a) greater than (b) less than (c) less than or equal to (d) one-half of Answer: (a) 15. The NPV is the difference between the ________ value of all ________ cash inflows minus the ________ value of all current and future cash outflows. (a) future; present; present (b) present; future; present (c) present; present; future (d) present; future; future Answer: (b) 16. If you purchased a $10,000 certificate of deposit today with an APR of 12%, with monthly compounding, what would be the CD worth when it matures in 6 years? (a) $56,340 (b) $20,468 (c) $19,738 (d) $5,066 Answer: (b) 17. The real interest rate is 3.2%, the nominal interest rate is 8.36% and the rate of inflation is 5%. We are interested in determining the future value of $200 in 35 years time. What is the future price level? a) 2.91 b) 3.012 c) 5.516 d) 16.61 Answer: (c)