Question
Which of the following statements is CORRECT? A. The discount rate decreases. B. The riskiness of the investments cash flows decreases C. Reducing the size
Which of the following statements is CORRECT?
A. The discount rate decreases.
B. The riskiness of the investments cash flows decreases
C. Reducing the size of the annual payments by half (e.g., reducing the annual payment from $100 to $50) while doubling the number of annual payments (e.g., doubling the number of annual payments from 10 to 20).
D. Doubling the size of the annual payments (e.g., doubling the annual payment from $100 to $200) while reducing the number of annual payments by half (e.g., reducing the number of annual paymentsfrom 10 to 5)
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