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The Present Value of a Given Future Stream of Benefits

Question 8

Multiple Choice

The present value of a given future stream of benefits will be lower when the benefits are and the interest rate is .


A) accruing in the first time period only; lower
B) more distant in time; lower
C) more distant in time; higher
D) nearer in time; lower
E) equalized over a ten- year period; zero

Correct Answer:

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