1. Business
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  3. consider the following cash flow diagrams in these diagrams the...

Question: consider the following cash flow diagrams in these diagrams the...

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Consider the following cash flow diagrams. In these diagrams the present value (P) and the future value (F) are economically equivalent to the uniform series of payments (A) at a discount rate of 8% per period. Is the value of P larger than F, equal to F, or less than F? P is larger than F P equals F P is less than QUESTION 2 For the same cashflows considered in question 1, if the discount rate changed from 8% to 12% and the payment value remained the same, will the value of P that is economically equivalent to the uniform series (A) increase, decrease, or remain the same? Increase Decrease Remain the same QUESTION 3 For the same cashflous considered in question 1 . if the discount rate changed from 8% to 5% and the payment value remained the same, will the value of F that is economically equivalent to the uniform series (A) increase, decrease, or remain the same? Increase Decrease Remain the same

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