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5. I f you receive a positive cash flow of $1 9 5 ,000 at the end of year 3 , how much change in
5. If you receive a positive cash flow of $195,000 at the end of year 3, how much change in the PV of that cash flow if the discount rate is changed from 7% up to 14% ? a. The PV goes from -$159,178 to -$131,619 b. The PV goes from -113,378 to -103,306 c. The PV goes from negative to positive d. It doubles because the discount rate doubles
5. If you receive a positive cash flow of $195,000 at the end of year 3, how much change in the PV of that cash flow if the discount rate is changed from 7% up to 14% ?
a. The PV goes from -$159,178 to -$131,619
b. The PV goes from -113,378 to -103,306
c. The PV goes from negative to positive
d. It doubles because the discount rate doubles
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Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
