kiannafrazier7644 kiannafrazier7644
  • 22-07-2020
  • Business
contestada

As the discount rate applied to a single amount (lump sum) future value increases, the present value __________________.

Respuesta :

ewomazinoade ewomazinoade
  • 24-07-2020

Answer:

Decreases

Explanation:

present value is the sum of discounted cash flows.

as interest rate increases, which is used in discounting cash flow,present value decreases.

for example, the present value of $10 one year from now with a 10% discount rate is $9.09

when discount rate is 12%, it becomes $8.92

Answer Link

Otras preguntas

If 1g of fat contains 37KJ of energy, what percentage of the energy in the chocolate bar does the fat contain?
Giselle graphs the function f(x) = x2. Robin graphs the function g(x) = –x2. How does Robin’s graph relate to Giselle’s?
Explain plot structure in drama.
Mention 4 things that could cause changes in a shadow.
How did Mussolini create a dictatorial state in Italy
a passenger plane is flying above the ground. Describe two components of its mechanical energy.
calculate {dx x2 A. 1/x+c B.-1/x+c C.1/3x3+c D.-1/3x3+c
According to many experts, where may the famed 'Vinland' of Norse writings be located?
use benchmarks to determine the customary and metric units you would use to measure the height of your house
How are galaxies created