The present value factor will decrease:
A) The longer the period of time.
B) The higher the future value.
C) The lower the interest rate.
D) The higher the present value.
E) The slower the rate of growth.

Question

Quizplus · Accepted Answer

The present value factor decreases as the period of time increases because the value of money decreases over time due to inflation and other factors, making future cash flows less valuable in present terms.

The Present Value Factor Will Decrease