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A series of positive future cash flows has a present value of 50, ifthe cash flows are discounted at a rate of 3% per annum.

A series of positive future cash flows has a present value of 50, ifthe cash flows are discounted at a rate of 3% per annum. If we discount the same cash flows at 5% per annum, then the new present value will be

1...any value other than 50.

2. ... 62,547

3. ...less than 50

4. ... more than 50

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