The time value of money concept is fundamental to the analysis of cash inflow and outflow decisions covering periods of over one year.

An amount of money to be received in the future is worth less today than the stated amount.

TRUE

Discounting refers to the growth process that turns $1 today into a greater value several periods in the future.

FALSE

Compounding refers to the growth process that turns $1 today into a greater value several periods in the future.
TRUE

The interest factor for the future value of a single sum is equal to (1 + n)ⁱ.
FALSE

The time value of money is not a useful concept in determining the value of a bond or in capital investment decisions.
FALSE

If a single amount were put on deposit at a given interest rate and allowed to grow, its future value could be determined by reference to the future value of $1 table.
TRUE

 The time value of money concept is fundamental to the analysis of cash inflow and outflow decisions covering periods of over one year.
TRUE

The future value is the same concept as the way money grows in a bank account.
TRUE

 Cash flow decisions that ignore the time value of money will probably not be as accurate as those decisions that do rely on the time value of money.
TRUE

The present value of a positive future inflow can become negative as discount rates become higher and higher.
FALSE