Respuesta :
What would contribute to a lower present value is a higher discount rate.
Present value is the sum of discounted cash flows. In order to determine the correct options, examples would be used.
Example 1: less frequent discounting
The future value of an amount is $1000 in 3 years. The discount rate is 10%. The present value is:
$1000 / (1.1)^3 = $751.31
Example 2: Higher discount rate
The future value of an amount is $1000 in 3 years. The discount rate is 15%. The present value is:
$1000 / (1.15)^3 = $657.52
Example 3: fewer time periods
The future value of an amount is $1000 in 1 year. The discount rate is 10%. The present value is:
$1000 / (1.1) = $909.09
Example 4: lower discount factors
The future value of an amount is $1000 in 3 years. The discount rate is 5%. The present value is:
$1000 / (1.05)^3 = $863.83
Example 5: more discounting
The future value of an amount with quarterly compounding is $1000 in 3 years. The discount rate is 10%. The present value is:
$1000 / (1.025)^12 = 743.56
A similar question was solved here: brainly.com/question/9641711
