Which One of the Following Will Increase the Present Value

question 169

Multiple Choice

Which one of the following will increase the present value of an annuity?

• A) Lowering the discount rate.
• B) Payment of annuity in the end instead of payment at the beginning.
• C) Increasing the number of payments.
• D) Reducing the future value of the cash flow.
• E) Lowering the payment amount.

---

Definitions:

Cost Variances

Cost variances refer to the difference between the expected (budgeted) costs and the actual costs incurred during a specific period.

Management

The process of planning, organizing, leading, and controlling resources to achieve specific goals.

Exception

A deviation from the norm or a case that does not follow the general rule.

Standard Costs

Predetermined costs assigned to goods and services, used as benchmarks to measure performance by comparing them with actual costs.