Which One of the Following Will Increase the Present Value

question 390

Multiple Choice

Which one of the following will increase the present value of an annuity?

• A) Lowering the discount rate.
• B) Payment of annuity in the end instead of payment at the beginning.
• C) Increasing the number of payments.
• D) Reducing the future value of the cash flow.
• E) Lowering the payment amount.

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Definitions:

Economic Underdevelopment

A condition in which a country or region is not achieving its economic potential, marked by low GDP per capita, poverty, and low levels of industrialization.

Multinational Corporations

Large companies that own or control production of goods or services in one or more countries other than their home country.

Siphoning Off

The act of diverting or redirecting resources, funds, or energy from one area to another, often in a manner that is secretive or not sanctioned.