Question: A decrease in risk associated with a future stream of cash should result in _blank_ in the discount rate resulting in _blank_ in the net

A decrease in risk associated with a future stream of cash should result in _blank_ in the discount rate resulting in _blank_ in the net present value. Multiple choice question. 1)an increase, a decrease 2)no change, no change 3)a decrease, a decrease 4)a decrease, an increase 5)an increase, an increaseWhich answer best approximates the net present value of receiving $1,000 in two years and making a $500 payment three years from today, assuming a 5% discount rate? (Refer to the attached Present Value Tables as needed.) Present Value of $1 Periods 3% 4% 5% 6% 7% 8% 9% 1 .971 .962 .952 .943 .935 .926 .917 2 .943 .925 .907 .890 .873 .857 .842 3 .915 .889 .864 .840 .816 .794 .772 4 .888 .855 .823 .792 .763 .735 .708 5 .863 .822 .784 .747 .713 .681 .650 6 .837 .790 .746 .705 .666 .630 .596 7 .813 .760 .711 .665 .623 .583 .547 8 .789 .731 .677 .627 .582 .540 .502 9 .766 .703 .645 .592 .544 .500 .460 10 .744 .676 .614 .558 .508 .463 .422 11 .722 .650 .585 .527 .475 .429 .388 12 .701 .625 .557 .497 .444 .397 .396 13 .681 .601 .530 .469 .415

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