Find what does net present value mean

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Question 1: Does a company with more or less leverage need to consider being more conservative with insuring their other risks?

Question 2: Why must money received in the future be worth less than money receive today?

Question 3: Calculate the Present Value of these cash flow Streams using a 5% interest rate?

a. $1,000 in 1 year

b. $2,000 in 2 years

c. $500 in 3 years

Question 4: What does Net Present Value mean? If the investment to generate the cash flows in question 8 were $2,000, what would the NPV be assuming an interest rate of 5%?

Question 5: What is the NPV rule and how would it be used in the ERM or Risk Management process?

Reference no: EM132609341

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