1. When evaluating a project in which a firm might invest, the size but not the timing of the cash flows is important.

True

False

2. Return on equity equals return on assets when the firm has no debt.

True

False

3. Your older sister deposited $5,500 today at 8.4% annual interest. How much will she have in four years?

a. $7,414.92

b. $7,399.05

c. $7,594.16

d. $7,201.80

e. $7,483.70

4. Discounting is the process of finding the future value of some present amount.

True

False