As the Number of Periods Increases for a Project Having

question 72

Multiple Choice

As the number of periods increases for a project having uniform cash flows, the present value of each future discounted cash flow becomes:

• A) Smaller
• B) Does not change
• C) Irrelevant
• D) Larger

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Definitions:

Acromegaly

A disorder in which too much growth hormone is produced in adults.

Gigantism

A condition in which too much growth hormone is produced in childhood, resulting in an abnormally increased stature.

Dwarfism

A condition in which too little growth hormone is produced, resulting in an abnormally small stature.

Cretinism

A condition arising from a severe deficiency of thyroid hormone in infants or young children, leading to stunted physical and mental growth.