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scenario would lower the calculated value of the investment? The riskiness of the investment's cash flows decreases. The cash flows are in the form of

scenario would lower the calculated value of the investment?

The riskiness of the investment's cash flows decreases.

The cash flows are in the form of a deferred annuity, and they total $

100, 000 .

You learn that the annuity lasts for only

5

rather than

10

years, hence each payment is for $

20, 000

rather than for $

10, 000 .

The discount rate increases.

The discount rate decreases.

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