As the discount rate becomes higher and higher,the present value of inflows approaches:

Name: As the discount rate becomes higher and higher,the present value of inflows approaches:
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Question

Quizplus · Accepted Answer

When the discount rate increases, the future cash inflows are discounted at a higher rate, leading to a lower present value. As the discount rate approaches infinity, the present value of future cash inflows will approach zero. Therefore, the correct answer is A) zero.

As the Discount Rate Becomes Higher and Higher,the Present Value