Exam 7: Net Benefits Over Time and Present Value

A program has initial costs of $1,300.If the benefits of the program are $500 each year and costs are $200 each year, what is the internal rate of return over 5 years?

Suppose a program costs $100 with no benefits in year 0 and has net benefits of $40 for the next three years.With a discount rate of 6%, what is the program's present value?

Assume a project has $500 in initial costs.If annual benefits of the project are $800 and annual costs are $500, using a discount rate of 5%, what is the discounted benefit/cost ratio over 3 years?

If you put $50 in a savings account paying 4% for 2 years, and the interest rate is 4%, approximately how much money will you end up with?

What is the present value of $150 acquired in 2 years with a discount rate of 2% (approximately)?

When one incorporates inflation into a present value calculation, which of the following is the most correct?

Suppose a program has 0 initial costs and provides a net benefit of $10 every year forever.If the discount rate is 3%, approximately what is the present value of the program?

Present values of alternative projects of different lengths of time cannot be compared directly because

The decision rule for the internal rate of return states that if the IRR