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What Is an Argument Against the Use of High Discount

Question 34

Multiple Choice

What is an argument against the use of high discount rates?


A) Inflation can reduce the value of future earnings on a resource.
B) Consumer preferences can make a product or resource obsolete.
C) Resource owners can make more money by investing their capital in some other venture.
D) High discount rates can encourage rapid exploitation of resources for immediate payoffs.
E) They do not provide resource owners with reasonable with any monetary returns.

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