Which of the Following Statements Is TRUE

question 6

Multiple Choice

Which of the following statements is TRUE?

• A) The present discounted value of future cash flows rises as the time to payoff increases.
• B) The present discounted value of future cash flows rises with the interest rate.
• C) The present discounted value of future cash flows falls when the interest rate rises.
• D) The present discounted value of future cash flows remains constant as the time to payoff decreases.

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Definitions:

Film Processor

A machine or device used in the development and processing of photographic films to produce negatives or slides.

Cinématographe

A compact, portable hand-cranked machine invented by Auguste and Louis Lumière and first exhibited in Paris in 1895. It was a camera, a processing device, and a projector all in one.

Star System

The practice by movie studios of promoting and marketing a few actors or actresses to stardom, which helps to attract a larger audience to their movies.

Adolph Zukor

A pioneering figure in the film industry, founder of Paramount Pictures, and a key player in the development of the studio system.