(Q25 IN TYPE B)GIVEN A SET FUTURE VALUE (GREATER THAN ZERO), WHICH...

22. (Q25 in Type B)Given a set future value (greater than zero), which of the following will contribute to a lower present value? A) Higher discount rate. B) Fewer time periods. C) Less frequent discounting. D) Lower discount factor. Solution A. The higher discount rate lowers the PV; the other three will raise the PV.