Answered: The present value of a future cash flow…

The present value of a future cash flow decreases as the annual interest rate decreases, all else held constant. True False

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 3Q: Why is it true, in general, that a failure to adjust expected cash flows for expected inflation...

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The present value of a future cash flow decreases as the annual interest rate decreases, all else held constant.
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