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

question 82

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:

Pollen

Fine to coarse powdery substance comprising pollen grains, which are male microgametophytes of seed plants, responsible for the fertilization of the female ovule.

Self-incompatibility

A mechanism in some plants that prevents self-fertilization and promotes genetic diversity by rejecting pollen from the same or genetically similar plant.

Pollen Tube

A tube that forms from a pollen grain and grows toward the ovule to enable sperm to pass directly to an egg for fertilization in plants.

Diploid

An organism or cell that contains two complete sets of chromosomes, one from each parent.