Question: Given current interest rate effects caused by monetary policy (central banks actions), explain the Present and Future Value concepts when measuring the time value of
Given current interest rate effects caused by monetary policy (central banks actions), explain the Present and Future Value concepts when measuring the time value of money ? Illustrate Present Value versus Future Value as it relates to assessing assets and liabilities given interest rate changes. As interest rise, what happens to the present value of equity and debt valuations, especially for high tech companies (in estimating future profits over the long run) ?
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