All Else Constant, the Present Value of an Investment Will

question 65

Multiple Choice

All else constant, the present value of an investment will increase if

• A) the investment is discounted at a higher interest rate.
• B) the investment is discounted for fewer years.
• C) the investment is discounted at a lower interest rate.
• D) both B & C.

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Definitions:

Tandem Drive

The typical two rear-axle drive system used in a three-axle highway tractor. The front axle on a typical highway tractor is the steer axle, while the tandem rear axles drive the truck.

Front Axle

The forward-most axle in a vehicle, often supporting the front part of the vehicle and, in many cases, incorporating steering mechanisms.

Bogie Centerline

The central longitudinal line that runs through the middle of a bogie, which is a wheel assembly found on trains or heavy land vehicles.

Sliding Fifth Wheel

A mechanism on a semi-trailer that allows for the adjustment of the weight distribution across its axles.