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On the graph of that measure against discount rates, lower rates give a value that is:
APositive
BNegative
CUndefined
DUnchanged
Answer & Solution
Correct answer: A. Positive
1. The line falls as the rate rises.
2. It crosses zero further right.
3. At lower rates the value is positive.
_Source: OpenStax Principles of Finance 2e, Chapter 16, How Companies Think about Investing._
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