Find effect of rate of return on present value of cash


Assume you will receive $1,000 at the end of year 1. What is its present value at the beginning of year 1 if you expect an 8% rate of return? What is the present value if you expect a 9% return? 10%? What can you conclude about the effect of the rate of return on the present value of cash to be received in the future?

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Finance Basics: Find effect of rate of return on present value of cash
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