The present value of a positive future inflow can become negative as discount rates become higher and higher.

Name: The present value of a positive future inflow can become negative as discount rates become higher and higher.
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Quizplus · Accepted Answer

The present value of a positive future inflow decreases as discount rates increase, but it cannot become negative simply due to higher discount rates; it will always remain positive if the future inflow is positive.

The Present Value of a Positive Future Inflow Can Become