Which of the Following Statements Is False with Respect to the Present

question 53

Multiple Choice

Which of the following statements is false with respect to the present value of a future amount?

• A) The higher the discount rate, the lower the present value of a single sum for a given time period.
• B) The relation between present value and time is exponential.
• C) The greater the time period, the lower the present value of a single sum for a given interest rate.
• D) The lower the discount rate, the lower the present value of a single sum for a given time period.

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Definitions:

Current State

The existing conditions or situation of an organization, system, or process at a given point in time.

Unfreezing Process

The initial stage of change in an organization, aiming to dismantle existing mindsets and strategies.

Survival Anxiety

A motivational factor that drives individuals or organizations to change due to the fear of failure or extinction.

Current Behaviours

Observable actions or conduct of individuals in the present, often assessed in organizational contexts for performance evaluations or development planning.