Question

The farther in the future a dollar will be received, the less it is worth today. True False
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Answer #1

Answer) True

Explanation:

It is true because of Time Value of Money. The higher the discount rate, lower the present value of dollar to be received in future because the present value factor is the reciprocal of the future value factor. Thus, the present value of a dollar decreases with the increase in time for the dollar to be received.

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