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How present values are affected by changes in interest rates

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Reference no: EM132835178

Time value of money (TVM) is the foundation of mathematical finance. It is important to be able to demonstrate how the TVM concept can be applied to corporate finance, as well as to personal finances. It addition, knowing how to apply various technical terms used in finance, such as discount rate, present value, and future value, is a useful skill.

Instructions

Problem 1: Explain the concept of cash flow in corporate finance.

Problem 2: Explain how present value and future values are related.

Problem 3: Explain how present values are affected by changes in interest rates.

  • Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Reference no: EM132835178

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