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You have just calculated the present value of the expected cash flows of a potential investment. Management thinks your figures are too low. Which of
You have just calculated the present value of the expected cash flows of a potential investment. Management thinks your figures are too low. Which of the following actions would increase the present value of your cash flows?
a
Assume a longer stream of cash flows of the same amount
b
Increase the discount rate
c
Decrease the discount rate
d
a and c
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