For a given period of time, as the discount rate increases, the present value factor decreases.
<h3>What is discounted present value?</h3><h3>Discount Rate for Finding Present Value</h3>
The discount rate is the investment rate of return that is applied to the present value calculation.
In other words, the discount rate would be the forgone rate of return if an investor chose to accept an amount in the future versus the same amount today.
<h3>Why present value is important?</h3>
Present value is important because it allows investors to compare values over time.
PV can help investors assess future financial benefits of current assets or liabilities.
Used in areas like financial modeling, stock valuation, and bond pricing, based on its future returns, investors can calculate present value.
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Answer:
You could have done a transaction that you didn't take into consideration in the check register.
this might be:
1. check
2. debit card withdrawal or POS transaction
3. Bank charges
4. fees for an order of checks
Answer:
$3,854 million
Explanation:
Revenue in year 1 = NOPAT / NOPM
Revenue in year 1 = $572.7 / 15.9%
Revenue in year 1 = $572.7 / 0.159
Revenue in year 1 = $3,601.8868
Projected revenue in year 2 = Revenue in year 1 * (1 + Growth rate)
Projected revenue in year 2 = $3,601.8868 * (1 + 7%)
Projected revenue in year 2 = $3,601.8868 * 1.07
Projected revenue in year 2 = $3854.018876
Projected revenue in year 2 = $3,854
So, the projected revenue for the year ended December 31, Year 2 is $3,854 million.