Everything else being equal, the longer the period of time, the lower the present value.

Question

Quizplus · Accepted Answer

This statement is true according to the concept of time value of money, which states that money in the future is worth less than money in the present due to factors such as inflation and opportunity cost. Therefore, the longer the period of time, the greater the discounting effect on future cash flows, making the present value lower.

Everything Else Being Equal, the Longer the Period of Time