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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 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
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
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Future value present value1 ratetime 130000 Present value10041 Present value 125000 Usi...
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
