How is present value affected by change in the discount rate, Financial Management

Assignment Help:

How is present value affected by a change in the discount rate?

Present value is inversely associated to the discount rate.  In other words current value moves in the opposite direction of the discount rate. If the discount rate enhance, current value decreases.  If the discount rate reduces, present value enhances.

 

 


Related Discussions:- How is present value affected by change in the discount rate

Price of equity shares, please give us the formula of price of equity share...

please give us the formula of price of equity shares of walter''s and gordon''s model

Callability, It is a feature that allows the issuer to redeem its bon...

It is a feature that allows the issuer to redeem its bonds before maturity. Almost all convertible bonds come with this feature. Due to this feature, bonds carry

What the term objective denotes- financial management, What the term object...

What the term objectives denotes- financial management It must be noted at the outset that term 'objective' is used in the sense of a goal or decision criterion for three decis

Define the meaning of rate of return on investment, Define the meaning of r...

Define the meaning of rate of return on investment An investment project which provides positive NPV when its cash flows are discounted by cost of capital makes a net contribut

Decision table, drow decision table of financee managment system

drow decision table of financee managment system

Dow jones global index (djgi), Dow Jones Global Index (DJGI) The DJGI a...

Dow Jones Global Index (DJGI) The DJGI aims to cover 95% of market capitalisation at country level. As with FTSE and MSCI, there are the same 23 developed markets, but with gre

Legal framework-asic, Legal Framework ASIC, in order to equip itself wi...

Legal Framework ASIC, in order to equip itself with its wide-ranging functions, is empowered with additional resources and new legislative powers. Towards this, the Australian

What do you mean by interest rate swap, What do you mean by Interest rate s...

What do you mean by Interest rate swap? Explain the various types of interest rate swap Meaning: It is an arrangement where by one party exchange one set of interest rate paymen

Explain official reserve assets and its major components, Explain official ...

Explain official reserve assets and its major components. Answer:  Official reserve assets are those financial assets which can be employed as international means of payments.

State the meaning ofunlimited profit sharing, State the meaning ofUnlimited...

State the meaning ofUnlimited profit sharing Unlimited profit sharing means that equity shares have an unlimited potential for dividend payments and price appreciation. Which i

Write Your Message!

Captcha
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