Higher discount rates willa not affect the present value of, Ask an Expert

Finance

Higher discount rates will

A. not affect the present value of the future cash flow.

B. increase the present value of any future cash flow.

C. decrease the present value of any future cash flow.

Please expain

2. Which of the following statements is true?

The longer the time period that funds are invested, the greater the future value.

The lower the discount rate that funds are invested at, the greater the future value.

The shorter the time period that funds are invested, the greater the future value, regardless of the investment rate.

The higher the interest rate, the slower the value of an investment will grow.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92679976

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