Question
Consider an investment that promises $1000 in each of the following three years and $5000 in five years. The interest rate is 14%. Select all
Consider an investment that promises $1000 in each of the following three years and $5000 in five years. The interest rate is 14%.
Select all true statements.
Question options:
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Holding everything else constant, an increase in the cash flows would result in an increase of present value
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Holding everything else constant, an increase in the interest rate would result in an increase of present value
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Holding everything else constant, if the last payment were to double in size, then the present value of the cash flows would also double.
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Holding everything else constant, if the last cash flow were to be delayed two more years, the present value would decrease
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