Net Present Value Will Be Greater

question 62

Multiple Choice

Net present value will be greater

• A) as a fixed set of cash receipts occurs later rather than earlier
• B) as the total of the cash receipts, made in same time periods, is smaller
• C) for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each
• D) for a 4% discount rate than for a 6% discount rate
• E) All of the above are true.

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