Multiple Choice
An important element in estimating the present value of an investment is the calculation of the discount factor.The discount factor may be expressed as _______ where r is the discount rate and n is the number of years the investment is held.
A) (1 + r) n
B) (1 + n) r
C) 1/(1 + r) n
D) 1/(1 + n) r
Correct Answer:
Verified
Correct Answer:
Verified
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