If the discount (or interest) rate used to calculate the present value of a future payment increases,
Question:
If the discount (or interest) rate used to calculate the present value of a future payment increases, the calculated present value will do which of the following?
a. Increase
b. Decrease
c. Remain the same
d. Increase as the period of time shortens
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The correct answer is b Decrease The present value of a future payment is the amount of money that w...View the full answer
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