The lower the present value of a given future cash flow

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Reference no: EM13829137

1. The present value of a given amount increases as the number of years over which it is to be discounted decreases.



2. The present value of an amount to be received in five years is greater than the present value of the same amount to be received in ten years.



3. The higher the discount rate, the lower the present value of a given future cash flow.



Reference no: EM13829137

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