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All else equal, the present value of a future cash flow ______ as the period of...

All else equal, the present value of a future cash flow ______ as the period of time, N, increases.

Consider the appropriate formula to answer this question.

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Answer:

From the given formula we see that NPV is inversly proportional to the time period of future cash flows

=> PV   1/(1+rate)^N.

Hence all else equal  the present value of a future cash flow decreases as the period of time, N, increases

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