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Which one of these statements is correct concerning the time value of money? Decreasing the PV...

Which one of these statements is correct concerning the time value of money?

Decreasing the PV decreases the FV.

Increasing the initial cost of a project increases the project's NPV

Increasing the discount rate, increases the PV of a project.

Increasing the FV decreases the PV

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Answer #1

Answer is Decreasing the PV decreases the FV.

Explanation: The higher the present value, higher will be the future value of such amount. Thus, if the present value decreases, the future value of such amount will get increased.

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