Consider the relationship between present values and interest rates. As the interest rate increases:

A) The PV of cash inflows increases

B) The PV of cash inflows decrease

C) The PV of cash outflows decrease (do not complicate this with any negative sign, rather just consider the "absolute value" (i.e. size) of the cash outflow)

D) BOTH the PV of cash inflows INCREASES AND the PV of cash outflows DECREASES (i.e. both of those other responses are correct)

E) BOTH the PV of cash inflows DECREASES, AND the PV of cash outflows DECREASES (i.e. both of those other responses are correct)

F) none of the other responses are correct