Question: D Question 16 1 Suppose VO = $1000 / (1+r)**T where VO is the initial value, $1000 is the future value, r>O is the discount
D Question 16 1 Suppose VO = $1000 / (1+r)**T where VO is the initial value, $1000 is the future value, r>O is the discount rate and Tis the number of discount periods. What is the relation be Vo, r and T? You need to select ALL correct answers: Ifr goes up. VO goes down Ifr goes down, Vo goes up If T goes up. VO goes down If T goes up, VO goes up The effect of r on VO is larger for short discounting periods than for long discounting periods The effect of r on VO is larger for long discounting periods that for short discounting periods
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