What happens to a future value as you increase the interest (growth) rate? Explain. Also, what happens to a present value as you increase the discount rate? Explain. When might we see the impact of present and future value in terms of the accounting profession?
What happens to a future value as you increase the interest (growth) rate? Explain. Also, what happens to a present value as you increase the discount rate? Explain. When might we see the impact of present and future value in terms of the accounting profession?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 12DQ
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- What happens to a
future value as you increase the interest (growth) rate? Explain. Also, what happens to a present value as you increase the discount rate? Explain. - When might we see the impact of present and future value in terms of the accounting profession?
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