Which of the Following Is Associated with an Increase in the Discount

question 88

Multiple Choice

Which of the following is associated with an increase in the discount rate?

• A) It will increase the present value of future cash flows.
• B) It will have no effect on net present value.
• C) It will reduce the present value of future cash flows.
• D) It is one method of compensating for reduced risk.

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of unions that collectively represent more than 12 million workers in the United States.

Federation

An organization formed by grouping together several smaller bodies, such as unions or associations, that retain their individual identities but work together for common goals.

Free Speech

The right to express any opinions without censorship or restraint, fundamental in democracies but also pertinent to workplace rights and union activities.

Election Provisions

The rules and procedures governing how elections are conducted within a labor union context, including the election of representatives or decisions on union status.