As the discount rate increases without limit,the present value of the future cash inflows:
A) Gets larger without limit.
B) Stays unchanged.
C) Approaches zero.
D) Gets smaller without limit, i.e. approaches minus infinity.

Question

Quizplus · Accepted Answer

A rise in the discount rate will decrease the present value of the amount, bringing it closer to zero as it increases.

As the Discount Rate Increases Without Limit,the Present Value of the Future