Essentials of Corporate Finance
Essentials of Corporate Finance
8th Edition
ISBN: 9780078034756
Author: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 3CTCR
Summary Introduction

To discuss: The effect of increase in the interest rate on the future and present values.

Introduction:

The future value of money refers to the amount of dollars that an investment grows over a definite period at a particular rate of interest rate.

Present value refers to the current worth of the future cash inflows after discounting with a discount rate.

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