(Present value tables required)The present value of an investment is affected by which of the following?

Question

Quizplus · Accepted Answer

All of the factors mentioned, interest rate, number of time periods, and type of investment (i.e., annuity versus lump sum) can affect the present value of an investment. For example, a higher interest rate will decrease the present value of a future cash flow, while a longer time period or an annuity will increase the present value. Therefore, it is important to consider all of these factors when evaluating the present value of an investment.

(Present Value Tables Required)The Present Value of an Investment Is