Which of the following statements is/are true concerning the time value of money?
A) Money to be received seven years from now has a lower present value than money to be received in three years.
B) Money received seven years from now will have a lower present value if a higher discount rate is used.
C) Money received seven years from now will have a greater present value if a higher discount rate is used.
D) Money to be received seven years from now has a lower present value than money to be received in three years AND money received seven years from now will have a lower present value if a higher discount rate is used.
Correct Answer:
Verified
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