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You company has invested in a project, producing impenetrable latex gloves. This project is anticipated to last for 10 years and the estimated net cashflows

You company has invested in a project, producing impenetrable latex gloves. This project is anticipated to last for 10 years and the estimated net cashflows from the project is R200,000 per annum. if we value the series of net cashflows using the present value of annuity.



Will the valuation of net cash flows increase or decrease as the interest rate increase?

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