Briefly explain the relationships between present value and (a) The length of time until the future cash
Question:
Briefly explain the relationships between present value and
(a) The length of time until the future cash flow occurs, and
(b) The discount rate used in determining present value.
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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a The longer the time until the future cash flow will o...View the full answer
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Related Book For 
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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