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TB MC Qu . 0 4 - 0 4 Assume a project has an initial... Assume a project has an initial cash outflow followed by

TB MC Qu

. 04 - 04

Assume a project has an initial...

Assume a project has an initial cash outflow followed by seven years of cash inflows. If the discount rate increases, the present value will:

Multiple Choice

remain unchanged.

increase.

change, but the direction of the change is unknown.

remain unchanged, but the timing of the cash flows must change.

decrease.

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