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    Foundations of Financial Management Study Set 1
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    Exam 9: The Time Value of Money
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    As the Discount Rate Becomes Higher and Higher,the Present Value
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As the Discount Rate Becomes Higher and Higher,the Present Value

Question 6

Question 6

Multiple Choice

As the discount rate becomes higher and higher,the present value of inflows approaches:


A) zero.
B) minus infinity.
C) plus infinity.
D) need more information.

Correct Answer:

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