A 1.412 number is a typical discount factor for a single sum.

Name: A 1.412 number is a typical discount factor for a single sum.
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Question

Quizplus · Accepted Answer

A typical discount factor for a single sum is less than 1, as it represents the present value of $1 to be received in the future, discounted at a certain rate. A factor of 1.412 would suggest an amount greater than the original sum, which contradicts the concept of discounting.

A 1412 Number Is a Typical Discount Factor for a Single