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because the rate of discount is being increased therefore the original amount lets say $500 no longer remains the same nor does it raise or stay the same.

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Q: Why present value decreases as the discount rate increases?
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As the discount rate increases without limit the present value of a future cash flow?

Decreases.... The formula is PV = $1 / (1 + r)t PV = Present Value r = discount rate Because 1/r continues to get smaller as r increases, thus resulting in an exponentially smaller Present Value.


What happens to the present value of an annuity when the interest rate decreases?

it increases


The present value of a perpetuity decreases when what decreases?

When the value of money decreases (inflation)


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8-9 cents Increases with lower interest rates and decreases with longer periods of time.


What happened to the value of gravity when the value of distance increases?

it decreases


Why the share value increases or decreases?

Stock split


What is the relationship between interest rate and discount rate?

When interest rates increases currency value appreciates while when interest rate decreases so the currency rates depreciates


What happens to the fraction as the denominator increases?

the entire fraction decreases


What is numerical pattern that increases or decreases at a constant rate or value?

An arithmetic sequence is a numerical pattern where each term increases or decreases by a constant value. This constant value is called the common difference.


What is normally used as the discount rate in the net present value method?

the net present value as determined by normal discount rate is 10%


What happens to the fraction as the denominator decreases?

The value of the fraction increases.


To increase a given present value the discount rate should be adjusted?

To increase a given present value, you would generally lower the discount rate. This is because a lower discount rate reduces the impact of future cash flows, making the present value higher. Conversely, increasing the discount rate would decrease the present value.