When Computing a Present Value, Which of the Following Is

question 67

Multiple Choice

When computing a present value, which of the following is TRUE?

• A) You should adjust the discount rate to match the time period of the cash flows.
• B) You should adjust the time period to match the present value.
• C) You should adjust the future value to match the present value.
• D) You should adjust the cash flows to match the time period of the discount rate.

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Definitions:

Contracted

The action of formally entering into a binding agreement or contract, where specific terms and conditions are agreed upon by the parties involved.

Wedding Reception

A celebratory gathering following a wedding ceremony, often involving a meal, entertainment, and dancing.

Discretionary Remedy

A legal remedy determined by a judge's discretion, often based on equitable principles, rather than fixed guidelines.

Exclusively

Solely, without including others; limited to a particular individual or group.