Chapter 5 LS

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Why is a dollar received today worth more than a dollar received in the future?

Today's dollar can be reinvested, yielding a greater amount in the future.

Which of the following can be determined using the future value approach to compound growth developed in this chapter?

Sales Growth Population Growth Dividend Growth

The formula for a present value factor is 1/(1+r)^t. (True/False)

True


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