Which One of the Following Will Increase the Present Value

question 75

Multiple Choice

Which one of the following will increase the present value of a finite stream of even cash flows? Assume a positive rate of return.

• A)Moving every cash flow one time period further into the future
• B)Decreasing the amount of each cash flow
• C)Increasing the Time 2 cash flow by $100 and lowering the Time 3 cash flow by $100
• D)Moving the Time 1 cash inflow to Time 2
• E)Increasing the discount rate

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Definitions:

Job Ranking

A method of job evaluation that involves creating a hierarchy of jobs from lowest to highest based on their overall value to the organization.

Point Method

A technique used in job evaluation to quantify the value of a job's aspects or components, assigning points based on complexity, skills required, and responsibilities.

Expectancy Theory

A motivation theory suggesting that an individual's willingness to work is based on the expectation that their efforts will lead to desired performance and rewards.

Instrumentality Theory

A concept in motivation theory that suggests the perceived relationship between performance and outcomes affects motivation.