Which one of these statements is correct concerning the time value of money?
A)Increasing the initial cost of a project increases the project's NPV.
B)Increasing the discount rate,increases the PV of a project.
C)Increasing the FV decreases the PV.
D)Decreasing the PV decreases the FV.
E)Decreasing the discount rate increases the FV.

Question

Quizplus · Accepted Answer

Decreasing the PV decreases the FV because the future value is calculated by multiplying the present value by (1 + discount rate)^n.

Which One of These Statements Is Correct Concerning the Time