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1. The effect of a lower discount rate, say changing the discount rate from 12% to 11%... a. Lowers the Present Value of a Future
1. The effect of a lower discount rate, say changing the discount rate from 12% to 11%...
a. Lowers the Present Value of a Future Cash Flow
b. Raises the Present Value of a Future Cash Flow
2. The effect of a lower discount rate, say changing the discount rate from 12% to 11%...
a. Lowers the Net Present Value of a project
b. Raises the Net Present Value of a project
3. The effect of a lower discount rate, say changing the discount rate from 12% to 11%...
a. Lowers the value of a firm
b. Raises the value of a firm
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