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Which of the Following Is True of the Present Value

Question 7

Multiple Choice

Which of the following is true of the present value of an investment?


A) The higher the rate of interest the higher will be the present value of an investment.
B) Present value of an investment is an increasing function of the time period of investment.
C) The longer the time period of investment the lower will be its present value.
D) Present value falls less than proportionately with the length of the delay in payment.

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