The Present Value of $1 Million to Be Received in the Future

question 332

Multiple Choice

The present value of $1 million to be received in the future will

• A) increase if the interest rate rises.
• B) increase if the payment is received at a more distant time in the future.
• C) be greater than $1 million.
• D) increase if the interest rate were to fall from 8 percent to 4 percent.

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Definitions:

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