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What else can I help you with?
What happens to the fraction as the denominator decreases?
The value of the fraction increases.
What does it mean for variables to show correlation?
A positive correlation coefficient means that as the value of one variable increases, the value of the other variable increases; as one decreases the other decreases. A negative correlation coefficient indicates that as one variable increases, the other decreases, and vice-versa.
What is direct and indirect proportion?
Direct Proportion-As one of the value increases,so does the other. Indirect Proportion-As one value increases,the other decreases. ~Hannah^^
Can Km be a negative value?
No the Km can never be a negative value. The Km increases or decreases with temperature. An incorrect calculation can produce a negative value.
What is the present value of 132000?
To calculate the present value of $132,000, you need to know the discount rate and the time period for which you're calculating the present value. The formula is ( PV = \frac{FV}{(1 + r)^n} ), where ( FV ) is the future value ($132,000), ( r ) is the discount rate, and ( n ) is the number of periods. Without specific values for ( r ) and ( n ), the present value cannot be determined.
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
As the discount rate becomes higher the present value of inflows approaches?
As the discount rate increases, the present value of future cash inflows decreases. This is because higher discount rates reduce the value of future cash flows, reflecting the opportunity cost of capital and the time value of money. Ultimately, with a sufficiently high discount rate, the present value of future inflows can approach zero, indicating that those future cash inflows are less valuable in today's terms.
Does decreasing a discount rate lower the present value?
No, decreasing the discount rate actually increases the present value of future cash flows. The discount rate reflects the time value of money, and when it is lowered, future cash flows are discounted less heavily, resulting in a higher present value. Conversely, increasing the discount rate would decrease the present value.
What is the relationship between changes in interest rates and the ensuing changes in present values?
Changes in interest rates have an inverse relationship with present values. When interest rates rise, the present value of future cash flows decreases because the discount rate applied to those cash flows increases, making them less valuable today. Conversely, when interest rates fall, present values increase as the discount rate decreases, enhancing the value of future cash flows. This dynamic is crucial for valuing investments and understanding market behavior.
WHICH ONE OF THE FOLLOWING STATEMENTS IS CORRECT ALL ELSE HELD CONSTANT tHERE IS AN INVERSE RELATIONSHIIP between the present value and the future value?
The statement is incorrect. There is an inverse relationship between present value (PV) and the discount rate, not between present value and future value (FV). As the PV increases, the FV also increases when the discount rate and time period are held constant. Conversely, a higher discount rate reduces the PV for a given FV.
How does discount rate affect net present value?
The discount rate directly influences the net present value (NPV) by determining the present value of future cash flows. A higher discount rate reduces the present value of those cash flows, leading to a lower NPV, while a lower discount rate increases the present value and thus the NPV. If the discount rate exceeds the internal rate of return of a project, the NPV may become negative, indicating that the project may not be viable. Conversely, a lower discount rate can make an investment more attractive by increasing its NPV.
The present value of a perpetuity decreases when what decreases?
When the value of money decreases (inflation)
Present value of the dollar?
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
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
Why the share value increases or decreases?
Stock split
