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When computing the present value of future cash flows, holding all other variables constant, a decrease...

When computing the present value of future cash flows, holding all other variables constant, a decrease in the discount rate:

Multiple Choice

  • Can’t be determined.

  • will not change the present value of future cash flows.

  • will increase the present value of future cash flows.

  • is one method of compensating for reduced risk.

  • will decrease the present value of future cash flows.

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