If you have a positive cash flow of $130,000 at the end of year 1, how much change in the PV of that cash flow if the discount rate is changed from 3% up to 9% ?
a. It triples because the discount rate triples
b. The PV goes from 125,000 to 116,071
c. The PV goes from negative to positive
d. The PV goes from -126,214 to -119,266

Answer rating: 100% (QA)

Future value present value1 ratetime 130000 Present value10041 Present value 125000 Usi... View the full answer