Multiple Choice
The reason that a discount factor in Year 3 is less than a discount factor in Year 2 is that
A) cash flows are uneven.
B) compounding does not occur.
C) cash flows are even.
D) present value is positive.
E) a dollar received in 3 years is worth less than a dollar received in 2 years.
Correct Answer:
Verified
Correct Answer:
Verified
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