Which of the following statements is true about the time value of money? a.The present value of a future amount will be greater if funds earn 5% instead of 10%. b.The present value of a single sum will be unaffected by the rate of return at which funds grow. c.The present value of a future amount will be greater if funds earn 12% instead of 6%. d.The present value of a future amount will be unaffected by how

Which of the following statements is true about the time value of money? a.The present value of a future amount will be greater if funds earn 5% instead of 10%. b.The present value of a single sum will be unaffected by the rate of return at which funds grow. c.The present value of a future amount will be greater if funds earn 12% instead of 6%. d.The present value of a future amount will be unaffected by how

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter14: Multinational Capital Budgeting

Section: Chapter Questions

Problem 2IEE

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Which of the following statements is true about the time value of money?

a.The present value of a future amount will be greater if funds earn 5% instead of 10%.

b.The present value of a single sum will be unaffected by the rate
of return at which funds grow.

c.The present value of a future amount will be greater if funds earn 12% instead of 6%.

d.The present value of a future amount will be unaffected by how
far in the future funds would be received.

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