The Present Value Factor Will Decrease

question 96

Multiple Choice

The present value factor will decrease:

• A) The longer the period of time.
• B) The higher the future value.
• C) The lower the interest rate.
• D) The higher the present value.
• E) The slower the rate of growth.

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Definitions:

Planned Objectives

Specific, measurable goals that an organization or individual aims to achieve within a set timeframe.

Flexible Budgeting

A budget that adjusts to changes in activity levels or other factors affecting costs, providing a more accurate comparison to actual results.

Unit Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor, calculated on a per unit basis.

Static Budget

A financial plan that does not change or adjust over the period, even when there are significant changes in the levels of activity.