When Computing a Present Value, Which of the Following Is

question 35

Multiple Choice

When computing a present value, which of the following is TRUE?

• A) You should adjust the discount rate to match the interval between cash flows.
• B) You should adjust the future value to match the present value.
• C) You should adjust the time period to match the present value.
• D) You should adjust the cash flows to match the time period of the discount rate.

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Definitions:

Two-House Legislature

A bicameral legislative system that consists of two chambers or houses, typically found in democratic governments to ensure a check and balance in the law-making process.

Northwest Ordinance

A significant law passed in 1787 by the United States Congress to regulate the settlement of the Northwest Territory and laid the foundations for the creation of new states.

Territorial Governments

Administrative bodies established to govern territories that are not yet fully incorporated as states within a federal structure, such as the U.S.

Western Territories

Western Territories refers to the lands west of the Mississippi River that were acquired or explored by the United States during its westward expansion in the 19th century.