| future value and discounted rates
In future value problems, the discount rate is adjusted
a)upward to reflect higher risk and to increase the future cash flows.
b)upward to reflect higher risk and to reduce the future cash flows.
c)downward to reflect higher risk and to increase the future cash flows.
d)downward to reflect higher risk and to reduce the future cash flows.
e)None of the above.
For this question I chose answer A because it would seem reasonable that when using the present value table the percentage is higher, so that it brings a higher return in the future.
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