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mart [117]
3 years ago
9

The present value of a cash flow will _________ be less than the future dollar amount of the cash flow

Business
1 answer:
nata0808 [166]3 years ago
7 0

The present value of a cash flow will always be <u>less</u> than the future dollar amount of the cash flow.

<h3>What is the present value?</h3>

The present value is the value of future cash flows discounted by the discount rate to today's value.

Discounting converts a future value to an equivalent value received today. Discounting measures the relative value of a series of future cash flows to a present value.

For example, if $500 is to be received in ten years, with a discount rate of 5%, its present value will be $307 ($500 x 0.614).

Thus, the present value of a cash flow will always be <u>less</u> than the future dollar amount of the cash flow.

Learn more about the present and future values at brainly.com/question/15904086

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Explanation:

  • Treasury bonds are U.S government debt securities, that are fixed with a maturity period of 10 years. Having almost little or no risk. So investment in terms of Treasury bonds can be relatively safe.
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  • As mentioned above T-bonds are almost risk-free which means safe and guaranteed returns, however business cannot be completely risk-free and you don't know how invested money would give returns or even not so there is a risk involved here.
  • Inflation, as the word means, is a general increase in prices invariably leading to the downfall of purchasing value for money. Inflation is market dependent. As that will definitely have an impact on the cost of doing business and related factors.
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Answer:

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Explanation:

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m_a_m_a [10]

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D) All of the above

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A local barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?


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