Question: Present Value of a future cash flow would decrease if : (a) Discount Rate is reduced (b) Discount Rate is increased (c) Time Period is

Present Value of a future cash flow would decrease if :

(a) Discount Rate is reduced

(b) Discount Rate is increased

(c) Time Period is decreased

(d) All of the above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Intermediate Financial Management Questions!

Q:

Answer all Electricals has borrowed $38,200 from its bank at an annual rate of 5.1 percent. It plans to lon in ght equal installments,starting at the end of next year. What is its annual loan 47....

Q:

BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand...

Q:

Ifyou deposit $2,000 into a bank account that pays 6% interest annually, how much will be in your account after 5 years? What's the future value of a 5%, 5-year ordinary annuity that pays $800 each...

Q:

1. The primary goal of financial management is: a-Maximize current sales b-Maximize the current value of each common stock. c-Minimize operational costs 2. Earnings per share are equal to: a-Net...

Q:

TVM Practice Questions If you deposit $2,000 into a bank account that pays 6% interest annually, how much will be in your account after 5 years? What's the future value of a 596, 5-year ordinary...

Q:

2. Earnings per share are equal to: a-Net income divided by the total number of shares outstanding. b-Gross income multiplied by the even value of the common shares. c-Operational income divided by...

Q:

Just answer # 3 2, What's the future value of a 5%, 5-year ordinary annuity that pays $800 each year? If this was an annuity due, what would its future value be? Consider the following time line and...

Q:

2, What's the future value of a 5%, 5-year ordinary annuity that pays $800 each year? If this was an annuity due, what would its future value be? Consider the following time line and answer the...

Q:

Print 1. MC.01-097 Bay Camera The company reported the following items on its financial statements for the year ended December 31, 2019: Sales $780,000 Cost of Sales $700,000 Selling, general &...

Q:

PLEASE ANSWER IN YOUR WORDS IN DETAILS Enron Auditing Scandal Rise of Enron The Enron scandal, publicized in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American...

Q:

Two common ways of providing memory protection between processes are segmentation and paging. Modern systems would typically implement software segments using paging. What resource does this waste...

Q:

The board of directors of Milligan Company has decided to dispose of an unneeded parcel of land through a property dividend to their shareholders. Individual homesites have been identified on the...

Q:

TermDescription 1 . Projected misstatements 2 . Uncorrected misstatements 3 . Other matter paragraph 4 . Rollover approach to materiality 5 . Formal commitment

Q:

The probabilities of a return on an investment of $5,000, $7,000, and $9,000 are 1 / 2, 3/8, and1 / 8.