Multiple Choice
You are scheduled to receive $10 000 in one year. An increase in the interest rate will have what effect on the present value of this cash flow?
A) It will have no effect on the present value.
B) It will cause the present value to rise.
C) It will cause the present value to fall.
D) The effect cannot be determined with the information provided.
Correct Answer:
Verified
Correct Answer:
Verified
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