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