Which of the following changes would increase the present value of a future payment? an increase in the amount of time that elapses before receiving the payment a decrease in the interest rate a decrease in the size of the payment a decrease in the certainty of the payment actually being received

Which of the following changes would increase the present value of a future payment? an increase in the amount of time that elapses before receiving the payment a decrease in the interest rate a decrease in the size of the payment a decrease in the certainty of the payment actually being received

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

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Question

Which of the following changes would increase the present value of a future payment?

		an increase in the amount of time that elapses before receiving the payment
		a decrease in the interest rate
		a decrease in the size of the payment
		a decrease in the certainty of the payment actually being received

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