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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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