The Net Present Value of $1,000 Received at a Time

question 2

Multiple Choice

The net present value of $1,000 received at a time in the future would

• A) decline if the $1,000 were received sooner.
• B) increase if the delivery date for the $1,000 were set farther into the future.
• C) increase if the interest rate rose.
• D) increase if the interest rate fell.

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Definitions:

Acetylene

A colorless, flammable gas, C2H2, used as a fuel and a building block for organic synthesis, known for its high flame temperature when burned in oxygen.

Covalently Bonded

Atoms connected by bonds formed when they share one or more pairs of electrons.

Molecule

A molecule is a group of two or more atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Hydrogen

The lightest and most abundant chemical element in the universe, symbolized as H.