Which of the Following Changes Would Increase the Present Value

question 419

Multiple Choice

Which of the following changes would increase the present value of a future payment?

• A)a decrease in the size of the payment
• B)a decrease in the time until the payment is made
• C)an increase in the interest rate
• D)All of the above are correct.

Prepare segmented income statements and evaluate divisional performance.

Calculate break-even points for divisions and overall company.

Understand the allocation of common fixed expenses among divisions.

Understand the importance and impact of sales mix on total profits and break-even points.

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Definitions:

Cohesive

Characterized by unity and forming a whole, often used to describe groups that work well together.

Task Conflict

Disagreements among individuals or groups regarding the distribution of tasks, methods, and processes in organizational settings.

Process Conflict

Process Conflict arises over how something should be done, involving disagreements on methodologies, procedures, or administrative policies.

Relationship Conflict

Relationship conflict involves personal, emotional tensions and animosities among individuals working together, often leading to decreased team cohesiveness and performance.