The future value of multiple cash flows is greater than the sum of those cash flows when the discount rate is zero.

Name: The future value of multiple cash flows is greater than the sum of those cash flows when the discount rate is zero.
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Question

Quizplus · Accepted Answer

When the discount rate is zero, the future value of multiple cash flows is exactly equal to the sum of those cash flows, as there is no interest or growth applied to increase their value over time.

The Future Value of Multiple Cash Flows Is Greater Than