An increase in ________ will decrease present value.
A)the discount rate per period
B)the original amount invested
C)the number of periods
D)both A and C
E)all of the above

Question

Quizplus · Accepted Answer

An increase in the discount rate or the number of periods will decrease the present value, as both factors increase the rate at which future cash flows are discounted back to the present.

An Increase in ________ Will Decrease Present Value