Given the future value,which of the following will contribute to a lower present value?
A) Higher discount rate
B) Fewer time periods
C) Less frequent discounting
D) Lower discount factor

Name: Given the future value,which of the following will contribute to a lower present value? A) Higher discount rate B) Fewer time periods C) Less frequent discounting D) Lower discount factor
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Question

Quizplus · Accepted Answer

A higher discount rate increases the rate at which future cash flows are discounted, resulting in a lower present value.

Given the Future Value,which of the Following Will Contribute to a Lower