Which of the following statements is/are false, all else the same? 1. Present values increase as the discount rate increases. II. Present values increase the further away in time the future value. III. Present values are always smaller than future values when both rand t are positive.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 1SBD
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Which of the following statements is/are false, all else the
same?
1. Present values increase as the discount rate increases.
II. Present values increase the further away in time the
future value.
III. Present values are always smaller than future values
when both rand t are positive.
Transcribed Image Text:Which of the following statements is/are false, all else the same? 1. Present values increase as the discount rate increases. II. Present values increase the further away in time the future value. III. Present values are always smaller than future values when both rand t are positive.
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