Solution-Which is associated with an increase in the

Which is associated with an increase in the discount rate

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Problem 1: Which of the following is associated with an increase in the discount rate?

A. It will increase the present value of future cash flows.

B. It will have no effect on net present value.

C. It will reduce the present value of future cash flows.

D. It is one method of compensating for reduced risk.

Reference no: EM132795677

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Which is associated with an increase in the discount rate

Reference no: EM132795677

Reference no: EM132795677

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