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    Managerial Accounting Study Set 23
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    Exam 14: Capital Budgeting Decisions
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    An Increase in the Discount Rate
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An Increase in the Discount Rate

Question 233

Question 233

Multiple Choice

An increase in the discount rate:


A) will increase the present value of future cash flows.
B) will have no effect on net present value.
C) will reduce the present value of future cash flows.
D) is one method of compensating for reduced risk.

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