When the Discount Rate

question 82

Multiple Choice

When the discount rate:

• A) decreases, the present value of the future cash flow does not change.
• B) decreases, the present value of any future cash flow increases.
• C) increases, the present value of any future cash flow increases.
• D) increases, the present value of any future cash flow does not change.

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Definitions:

Vigour

A physical or mental strength, energy, or force, often seen as a component of workplace engagement that involves resilience and consistent effort.

Absorption

The process by which one substance becomes fully integrated into another, or the degree to which something is absorbed or assimilated.

Resilience

The capacity to recover quickly from difficulties; toughness and the ability to withstand and adapt to life’s challenges.

CSR Practices

Corporate Social Responsibility practices involve companies voluntarily exceeding legal requirements to benefit social and environmental causes.