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fall.
rise.
remain unchanged.
cannot be determined without more information.
I would agree with the colleagues that it would fall.
Answer is FALL <<<<<<<<<<<<<<<<
NPV will fall, if the cash inflows are spread over3 years.
THE AMOUN SHOUD REMAINED UNCHANGED. IT JUST SAYS A AMOUNT THAT WILL BE RECEIVED. IT DOES OT SAY FROM WHERE OR IF THERE IS ANY INTEREST INVOLVED.
>>>>>>> The answer will be fall.
It will Fall
Apply FVIF Formula: FV=, Po=?, n=3
For testing apply i=% and%
FV=Po (1+i)^n
first apply i=%
Po=
Than apply i=%
Po=
So with an increase in interest rates Present value falls.
It will remain unchanged, the receiving part is fixed , only if I get it quickly I can benefit myself from the interest rates
fall
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