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    present value of cash flow

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    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?

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    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 ...

    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.

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