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EconomicsQ&A Library9. The present value of a future cost is:a. greater if interest rates are higher.b. greater if interest rates are lower.c. independent of interest rates unless money is borrowed to fund the program or project.d. independent of the number of years between now and when the programs first benefitsQuestion

Asked Mar 19, 2020

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9. The present value of a future cost is:

a. greater if interest rates are higher.

b. greater if interest rates are lower.

c. independent of interest rates unless money is borrowed to fund the program or project.

d. independent of the number of years between now and when the programs first benefits

Step 1

The present value is the current value of a future sum of money. It is calculated through the method of discounting. The time value of money is very important in the case of discounting which is due to the concept that one unit ...

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