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You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of
You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment?
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The riskiness of the investment's cash flows increases.
The discount rate decreases.
The cash flows are in the form of a deferred annuity, and they total to $ You learn that the annuity lasts for years rather than years, hence that each payment is for $ rather than for $
The discount rate increases. give me correct ans
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