Which of the following statements is true about the present value factors? a. The present value factor is the reciprocal of the present value of annuity due factor. b. The present value factor decreases as the interest rate decreases. c. The present value factor is also known as the discount factor. d. The present value factor should always be greater than 1.
Which of the following statements is true about the present value factors? a. The present value factor is the reciprocal of the present value of annuity due factor. b. The present value factor decreases as the interest rate decreases. c. The present value factor is also known as the discount factor. d. The present value factor should always be greater than 1.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 3QTD
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Which of the following statements is true about the present value factors?
a. The present value factor is the reciprocal of the present value of annuity due factor.
b. The present value factor decreases as the interest rate decreases.
c. The present value factor is also known as the discount factor.
d. The present value factor should always be greater than 1.
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