The present value formula illustrates that:

a.a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline.

b.an increase in the interest rate will cause a decision-maker to weigh distant ( or future) returns relatively more heavily than before the increase.

c.the present value of a fixed sum decreases as the time until it is to be paid increases.

d.both (a) and (c).

e.none of these