A Lower Discount Rate Applied to a Given Flow of Returns

question 11

Multiple Choice

A lower discount rate applied to a given flow of returns in the future

• A) remain unchanged if the future dollars do not change.
• B) increase.
• C) decrease.
• D) change in a direction that cannot be determined in general.
• e.g., $5,000 at the end of 5 years, $10,000 at the end of 10 years, $15,000 at the end of 15 years, etc.) will cause the present value of that flow to:

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Definitions:

Sound Waves

Mechanical waves that are an oscillation of pressure transmitted through a solid, liquid, or gas, composed of frequencies within the range of hearing.

Internal Structures

The complex parts or components located inside an organism, machine, or building, essential to its function or integrity.

Dosimeter

A device that measures exposure to ionizing radiation, such as X-rays, alpha rays, beta rays, and gamma rays.

Radiation Exposure

The condition of being subjected to ionizing or non-ionizing radiation such as from sunlight, x-rays, or nuclear reactions.