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TB MC Qu . 1 2 A - 3 ( Static ) An increase in the discount rate: An increase in the discount rate: Multiple

TB MC Qu.12A-3(Static) An increase in the discount rate:
An increase in the discount rate:
Multiple Choice
will increase the present value of future cash flows.
will have no effect on net present value.
will reduce the present value of future cash flows.
Is one method of compensating for reduced risk.
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