Recall Application 2, "Options for a Lottery Winner," to answer the following questions:
-The higher the interest rates, the higher the present value.

Name: Recall Application 2, "Options for a Lottery Winner," to answer the following questions: -The higher the interest rates, the higher the present value.
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Question

Quizplus · Accepted Answer

Higher interest rates decrease the present value of future cash flows because they increase the discount rate used in present value calculations.

Recall Application 2, "Options for a Lottery Winner," to Answer