When the Discount Rate Is Decreased

question 51

Multiple Choice

When the discount rate is decreased,

• A)the present value of future cash flows increases.
• B)the present value of future cash flows decreases.
• C)there is no change in the present value.
• D)net present value would equal zero.

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Definitions:

Ageism

Discrimination or prejudice against individuals or groups based on their age.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Management

The process of dealing with or controlling things or people, typically in a professional context.

Double Standard

A set of principles that applies differently and usually more rigorously to one group of people or circumstances than to another.