An increase in the discount rate will:

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Economics · Financial Management

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Reduce the present value of future cash flows

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Answer 1

Reduce the present value of future cash flows

Answer 2

Increase the present value of future cash flows

Answer 3

Have no effect on the present value

Answer 4

Compensate for reduced risk

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