Present value, also called “ discounted value ,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return . As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

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Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

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Students have asked these similar questions

“The greater the discount rate, the greater the present value of a future cash flow.” True or false? Explain your answer.

Which figure of merit provides an interest rate at which the present value of the future cash flows equals the amount invested? a) NPV b) IRR c) Cap Rate d) DCF Please ensure accuracy and explain your choice

Which of the following is true about present value calculations? Other things remaining equal, the present value of a future cash flow decreases if the investment time period increases. Other things remaining equal, the present value of a future cash flow increases if the investment time period increases.

Answer 2

Question

Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Answer 6

Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Answer 7

Chapter 12, Problem 11Q

To determine

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Present value, also called “ discounted value ,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return . As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Solution Summary: The author explains that present value is the current worth of a future sum of money or stream of cash flow, and that as the discount rate increases, it decreases.

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Want to see the full answer?

Chapter 12 Solutions

Present value, also called “ discounted value ,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return . As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Solution Summary: The author explains that present value is the current worth of a future sum of money or stream of cash flow, and that as the discount rate increases, it decreases.

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return. As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.

Want to see the full answer?

Chapter 12 Solutions

Present value, also called “discounted value,” is the current worth of a future sum of money or stream of cash flow given a specified rate of return.

As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.