Given a Set Future Value, Which of the Following Will

question 101

Multiple Choice

Given a set future value, which of the following will contribute to a lower present value?

• A) Higher discount rate
• B) Fewer time periods
• C) Less frequent discounting
• D)Lower discount factor

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Definitions:

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Sensitivity Analysis

A technique designed to analyze the effect that varied values of an independent variable exhibit on a particular dependent variable, considering certain presuppositions.

NPV Estimates

Predicted calculations of Net Present Value, which assesses the worth of a project or investment by discounting its future cash flows to their present value.

Dynamic Balance

The balance status of a moving object. For instance, it is common to dynamically balance a truck tire and wheel assembly.