Question: the reason that a discount factor presented in the present value of a single sum in year 2 is less than a discount factor in

the reason that a discount factor presented in the present value of a single sum in year 2 is less than a discount factor in year 2 is that

A. cash flows are uneven

B. a dollar received in 3 years is worth less than a dollar received in 2 years

C. present value is positive

D. compounding does not occur

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