As the discount rate applied to a lump sum future value increases, what effect does this have on the present value of the future lump sum amount? It stays the same It increases by some amount It decreases by some amount It will double the value of the lump sum Consider the following data: Fixed costs =$10,000,000 Variable cost per inpatient day =$400 Revenue per inpatient day =$1,200 Assume you have two investment opportunities that return the following cash flows: Assume the opportunity cost (discount) rate is 10% and the initial cost of the two investments is the same as well as the risk involved with each one. Which of the two investments would be preferred from a present value standpoint? Opportunity A Opportunity B Which of the follow statements best describes the contribution margin? The contribution margin is defined as revenues minus fixed costs The total contribution margin is defined as the contribution margin multiplied by total revenues The contribution margin is the dollar amount of each unit of revenue that is available first to cover fixed costs and then to contribute to profit The contribution margin is defined as fixed costs minus variable costs What is the present value of a $100 lump sum to be received in five years time (in the future) if the opportunity cost (discount) rate is 10 percent? $68.75 $65.91 $62.09 $71.33