Net Present Value Will Be Greater

question 41

Multiple Choice

Net present value will be greater:

• A)as a fixed set of cash receipts occurs later rather than earlier.
• B)if the future value of a cash flow is smaller.
• C)for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each.
• D)for a 4% discount rate than for a 6% discount rate.
• E)All of the above are true.