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Which of the Following Is Associated with an Increase in the Discount

Question 5

Multiple Choice

Which of the following is associated with an increase in the discount rate?


A) It will increase the present value of future cash flows.
B) It will have no effect on net present value.
C) It will reduce the present value of future cash flows.
D) It is one method of compensating for reduced risk.

Correct Answer:

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