As the Discount Rate Increases Without Limit,the Present Value of the Future

question 116

Multiple Choice

As the discount rate increases without limit,the present value of the future cash inflows

• A) Gets larger without limit.
• B) Stays unchanged.
• C) Approaches zero.
• D) Gets smaller without limit,i.e. ,approaches minus infinity.
• E) Goes to e^rn.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or unlearned response.

Pavlov's Experiment

A set of psychological experiments conducted by Ivan Pavlov illustrating that dogs could be conditioned to salivate upon hearing a bell if the sound was repeatedly paired with the presentation of food.

Food Powder

Edible substances ground into small, fine particles used in cooking and food processing, such as flour, cocoa, or powdered milk.

Permanent Change

An alteration or modification that is lasting and not reversible.