--%>
Assignment Help - homework help

Present value influenced by change in the discount rate

How is present value influenced by a change in the discount rate?

Present value is inversely associated to the discount rate. In other term, present value moves in the opposite direction of the discount rate. If the discount rate rises up, present value decreases. If the discount rate reduces, present value increases.

   Related Questions in Finance Basics

  • Q : Why is replacement value of assets

    Why is the replacement value of assets method not used generally to value complete businesses?The replacement value of assets method is not frequently applied to complete business valuations since it is frequently very hard to locate similar ass

    		•
  • Q : Two Questions Question 1 An all equity

    Question 1 An all equity firm has a required return on its equity of 15%, has 10 million shares outstanding, and pays no taxes. The shares are currently trading at $6.00 each. The firm is planning to borrow $9 million at 5% interest rate and use the borrowed funds to buyback a portion of its equi

    		•
  • Q : Explain Unscheduled Reimbursements

    Unscheduled Reimbursements: The Reimbursements collected by an agency which were not budgeted and are accounted for by an individual reimbursement class of an appropriation. To expend unscheduled reimbursements, the budget revision sh

    		•
  • Q : What is in store for banking

    What is in store for banking consolidation? Merger activity is a natural procedure by which companies make themselves more efficient and better capable to compete for customers. The banking industry is no exception

    		•
  • Q : State time dimensions State time

    State time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Describe. The income statement is such as a video: This measures a firm's profitability on a period of time (that can be a week, a

    		•
  • Q : What is Financial Restructuring

    Financial Restructuring: It is the reorganizing of a business' liabilities and assets. The procedure is frequently related with corporate restructuring where an organization's on the whole structure and its processes are refurbished. Though companies

    		•
  • Q : Define Executive Order Executive Order

    Executive Order (EO): It is a budget document, issued by the Department of Finance, asking for the State Controller’s Office to make an adjustment in their accounts. The adjustments are usually authorized by the Budget Act provision language, Bu

    		•
  • Q : Influence of opportunity costs How do

    How do opportunity costs influence the capital budgeting decision-making procedure? Opportunity costs reflect the foregone benefits of alternative not selected when a capital budgeting project is chosen. Any decrease in the cash flows of the fi

    		•
  • Q : Near monies Normal 0 false false false

    Normal 0 false false

  • Q : How the production of public goods will

    Normal 0 false false

    		•