Which of the following statements is TRUE?
A) The present discounted value of future cash flows rises as the time to payoff increases.
B) The present discounted value of future cash flows rises with the interest rate.
C) The present discounted value of future cash flows falls when the interest rate rises.
D) The present discounted value of future cash flows remains constant as the time to payoff decreases.
Correct Answer:
Verified
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