Which of the Following Changes Would Increase the Present Value

question 419

Multiple Choice

Which of the following changes would increase the present value of a future payment?

• A)a decrease in the size of the payment
• B)a decrease in the time until the payment is made
• C)an increase in the interest rate
• D)All of the above are correct.

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Definitions:

Production Manager

An individual responsible for overseeing the production process, coordinating all activities involved in the creation of goods or services.

Long-term Debt

Loans or other forms of debt that have a repayment period of more than one year.

Cash Increase

An increase in a company's cash flow, resulting from its operational, investing, or financial activities.

Cash Cycle

The duration between the initial cash outlay for the purchase of inventory and the collection of cash from customers from sales, essentially measuring the liquidity efficiency of a company.