The relationship between the present value and the investment time period is best described as:
A)direct.
B)inverse.
C)unrelated.
D)ambiguous.
E)parallel.

Name: The relationship between the present value and the investment time period is best described as: A)direct. B)inverse. C)unrelated. D)ambiguous. E)parallel.
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Question

Quizplus · Accepted Answer

The present value of an investment is inversely related to the time period; as the time period increases, the present value decreases, assuming a positive discount rate.

The Relationship Between the Present Value and the Investment Time