Assuming two investments have equal lives, a high discount rate tends to favour

a$)$ the investment with large cash flow early.

b$)$ the investment with large cash flow late.

c$)$ the investment with even cash flow.

d$)$ neither investment since they have equal lives.

Which of the following conclusions would be true if you earn a higher rate of return on

your investments?

a$)$ The greater the present value would be for any lump sum you would receive in the

future.

b$)$ The lower the present value would be for any lump sum you would receive in the

future.

c$)$ Your rate of return would not have any effect on the present value of any sum to be

received in the future.

d$)$ The greater the present value would be for any annuity you would receive in the

future.