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.

True

False

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.

True

False

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

True

False

Reference no: EM13829137

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