present value of cash flow
Not what you're looking for?
What happens to the present value of a cash flow stream when the discount rate increases?
In the context of an investment----If the required return on an investment goes up but the expected cash flows do not change, would you be willing to pay the same price for the investment or would you pay more or less for this investment than before interest rates changed?
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer what happens to the present value of a cash flow stream when the discount rate increases and if the required return on an investment goes up but the expected cash flows do not change, would you be willing to pay the same price for the investment or would you pay more or less for this investment than before interest rates changed.
Solution Preview
present value of cash flow
What happens to the present value of a cash flow stream when the discount rate increases?
When the discount rate increases, the present value of a cash flow ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.