Which of the following is true regardingthe discounting process?
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Thepresent value of a sum to be received in the future increases as thepaymentdateisextended furtherandfurther.
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For the same cash flows to be receivedin thefuture, the present value falls faster when theinterestrate is lower.
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For the same cash flows to be receivedin thefuture, the present value falls faster when theinterestrate is higher.
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At relatively high rates, funds due in the future are worth much more today.