What happens to present value factor as the discount rate

Assignment Help Finance Basics
Reference no: EM13394913

What happens to present value factor as the discount rate or interest rate increases for a given time period? What happens if the discount rate or interest rate decreases?

Reference no: EM13394913

Questions Cloud

Name an advertising campaign you believe was successful : name an advertising campaign you believe was successful. what made this campaign successful? name an unsuccessful
A customer places 10 orders with a net direct cost of 3000 : a company using activity based pricing marks up the direct cost of goods by 30 plus charges customers for indirect
Show graphically cost of income taxation of 30 to consumers : demonstrate graphically the cost of income taxation of 30 to consumers and producers for an income of 27908?how does
Suppose rhm is expected to pay the total cash dividend of : suppose rhm is expected to pay the total cash dividend of 5.60 next year and its dividends are expected to grow at the
What happens to present value factor as the discount rate : what happens to present value factor as the discount rate or interest rate increases for a given time period? what
A company consists of 25 per unit in variable costs and : a company has 25 per unit in variable costs and 1000000 per year in fixed costs. demand is estimated to be 100000
Explain why an investment increases in value when the : explain why an investment increases in value when the number of compounding periods increases? explain the difference
Danielle company produces the special spray nozzle the : danielle company produces a special spray nozzle. the budgeted indirect total cost of inserting the spray nozzle is
Comment on the following statement ldquowhen a : comment on the following statement ldquowhen a not-for-profit facility receives a contribution from a member of the

Reviews

Write a Review

Finance Basics Questions & Answers

  Would they be better served by evaluating investments

Could it be that they are actually doing the numerical analysis but not in a formal way that financial analysts and managers at larger companies might do?

  How long will it take after that until the account grows

how long will it take to double the value of a lump sum invested today? How long will it take after that until the account grows to four times the initial investment? Given the power of compounding, shouldn't it take less time for the money to dou..

  What dollar amount of interest will he receive

Mike has just paid $1,174 for a 5-year bond with a par value of $1,000 and a coupon rate of 9%.

  Why ppp or the law of one price may be violated

Suppose the spot exchange rate for the Canadian dollar is Can$1.15 and the six-month forward rate is Can$1.19. Note: Both exchange rates are expressed as the number of units of foreign currency per U.S. dollar.

  How much market value is absorbed by the total cost

By the end of the first day's trading, the issuing company's stock price had risen to $70. In percentage terms, how much market value is absorbed by the total cost (direct expenses plus underpricing cost)?

  The value of the investment in ten years

If 1000 dollars were invested now at a 12% rate componded annually what would be the value of the investment in teonyears

  How much money will you invest in stock x and stock y?

You have $12,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 10 percent. Assume your goal is to create a portfolio with an expected return of 12.30 percent.

  Role of economic value and replacement value

Critically evaluate these comments. Please don't wander; concentrate on the issues stated by quotation.

  Electronics is a midsized electronics manufacturer

MT 217 Electronics is a midsized electronics manufacturer located in Melbourne, Florida. The company president is Sherry Jones. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the ..

  What is its future value

An investment will pay $100 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 9% annually, what is its present value? Round your ans..

  What is the formula

Market prices are $1.0.35 for bonds, $19 for preferred stock and $35 for common stock. There will be sufficient internal common equity funding (i.e., retained earnings) available suck that the firm does not plant to issue new common stock.

  How the percent of sales method is developed

The "percent of sales method" is a method of preparing pro forma financial statements. Which of the following would be an example of how the "percent of sales method" is developed?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd