Which of the following changes would increase the present value of a future payment?
A)an increase in the size of the payment
B)an increase in the time until the payment is made
C)an increase in the interest rate
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Increasing the size of the payment increases the present value because the future cash flow is larger, making its present worth higher.

Which of the Following Changes Would Increase the Present Value