If all else is constant,the present value of an investment will increase if
A)the investment is discounted at a higher interest rate.
B)the investment is discounted for fewer years.
C)the investment is discounted at a lower interest rate.
D)both B and C.

Question

Quizplus · Accepted Answer

The present value increases if the investment is discounted for fewer years or at a lower interest rate, as both reduce the discounting effect.

If All Else Is Constant,the Present Value of an Investment