Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be a. Higher. b. Lower. c. Stay the same. d. Cannot tell. e. Variable. 5. As the discount rate increases without limit, the present value of the future cash inflows a. Gets larger without limit. b. Stays unchanged. c. Approaches zero. d. Becomes increasingly negative. e. Goes to ekn. 16. A recent advertisement in the financial section of a magazine carried the following claim: "Invest your money with us at 14 percent, compounded semiannually, and we guarantee to double your money sooner than you imagine." How long would it take to double your money at 14 percent, semiannual compounding? a. A little more than 10 years. b. A little more than 5 years. c. Never. d. Cannot be determined without more information. e. About 7 years. 17. Stock differs from debt in that a. stockholders are guaranteed higher earnings as compared to debt holders. b. stock is a real asset whereas debt is a financial asset c. debt holders always receive what is due them whereas stockholders often do not. d. stockholders receive money only after debt holders receive what is due them in the e. all of the above