Would time value of money matter

Reference no: EM131334455

1. If a firm's required return were 0 percent, would time value of money matter? As these returns rise above 0 percent, what effect would the increasing return have on future value? Present value?

2. What would happen to the future value of an annuity if interest rates fell in the late periods? Could the future value of an annuity factor formula still be used to determine the future value?

Reference no: EM131334455

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