You are scheduled to receive $10,000 in one year. What will be the effect of an increase in the interest rate on the present value of this cash flow?
A) It will cause the present value to fall.
B) It will cause the present value to rise.
C) It will have no effect on the present value.
D) The effect cannot be determined with the information provided.
Correct Answer:
Verified
Q89: Explain why a dollar today is worth
Q90: If $17,000 is invested at 10% per
Q91: What is the future value (FV) of
Q92: What is the present value (PV) of
Q93: What is the future value (FV) of
Q95: To calculate a cash flow's present value
Q96: How can we make a financial decision
Q97: You are scheduled to receive $10,000 in
Q98: The rule of 72 tells you approximately
Q99: If the one-year discount factor is equal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents