Question: Please explain the below statement is true or false with Time Value Of Money knowledge base: 1. Holding all else equal, as the risk associated
Please explain the below statement is true or false with Time Value Of Money knowledge base:
1. Holding all else equal, as the risk associated with the expected receipt of $100 in the future increases the present value that expected cash flow also increases.
2. Holding all else equal, as the markets expectations of inflation increase the present value of a future expected $100 cash flow will decrease.
3. Holding all else equal, as the rate of return that could be expected from a risk-free government security decreases the present value of a future expected $100 cash flow increases.
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