A given stream of cash flows will have a larger present value at a discount rate of 8% than it will at a discount rate of 12%.

Name: A given stream of cash flows will have a larger present value at a discount rate of 8% than it will at a discount rate of 12%.
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Question

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The present value of a stream of cash flows decreases as the discount rate increases, so a lower discount rate of 8% results in a larger present value than a higher discount rate of 12%.

A Given Stream of Cash Flows Will Have a Larger