Question

An investor wants to increase the Present value, the rate of discount applied for should be
increased
decreased
either increased or decreased
none​

Answer 1

Answer:

decreased only a lil bit

Answer 2

The correct answer is (b) decreased.

The time worth of cash is the hypothesis that clarifies how the present worth and the future worth of any venture are figured.

• The present worth alludes to the financial worth of speculation toward the start of the venture time frame, t=0.
• The present worth is the equivalent of the discounted future income.
• We ascertain it in light of three factors; future worth, determining loan cost, and the time frame of the venture.
• Accordingly all else equal, the present worth increases as the discount rate diminishes.