how is present value influenced by a change in


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

Present value is oppositely related to the discount rate.  Alternatively, present value moves in the reverse direction of the discount rate. As the discount rate increases, present value decreases.  If the discount rate decreases, present value gets increases.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: how is present value influenced by a change in
Reference No:- TGS0276265

Expected delivery within 24 Hours