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

---

Definitions:

Clean Sheet

An approach in design or planning that starts from scratch, without considering prior work or constraints, often referred to as starting with a 'blank slate'.

BPR

Business Process Re-engineering, a strategy for making an organization's business processes more efficient and effective.

Manufacturing

The process of using tools, machinery, and labor to produce goods for sale, typically on a large scale.

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies, in the context of moving and housing goods from point of origin to point of consumption.