1. You know that an asset earns 8% each quarter for 10 years. What additional information do you need to caluclate its present value?
A. Market value
B. Timing of cash flows
C. future value
C. discount rate
2. In the generic formula for valuing any asset, which state is true?
A. The symbol n represents the interest or discount rate.
B. The symbol n represents the number of times compounding or discounting occurs during the year
C. The symbol n represents the number of periods during which the discounting occurs.
D. The symbol n represent the present value