Which One of the Following Will Increase the Present Value

question 4

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:

CCK

Cholecystokinin, a peptide hormone involved in digestion and the feeling of satiety.

Brain

The central organ of the nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition, emotions, and behavior.

Peripheral Body Organs

Organs located outside of the central nervous system, often referring to parts of the body involved in processing and responding to sensory information.

Central Theory

A principle or concept that serves as the foundational or core idea in a particular field of study.