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31-01-2024
Business

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Which of the following statements is TRUE?
A. The effect of compounding is great over short time periods, but then it begins to decline as the horizon grows.
B. Moving cash flows to the right on a time line is called discounting, and nominal cash flows are additive across time.
C. Present value refers to the amount of money an investment will grow to over some period of time at some given interest rate.
D. To calculate the present value of future cash flows, the discount rate should be adjusted for both the timing or maturity of that cash flow and the inherent risk of that cash flow

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