The Present Value Interest Factor (PVIF)becomes lower as the number of years increases.

Name: The Present Value Interest Factor (PVIF)becomes lower as the number of years increases.
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Question

Quizplus · Accepted Answer

PVIF is the factor used to calculate the present value of future cash flow. It takes into account the interest rate and the number of years until the cash flow is received. As the number of years increases, the present value decreases, which means that the PVIF becomes lower. Therefore, the statement is true.

The Present Value Interest Factor (PVIF)becomes Lower as the Number