What happens to the present value of a cash flow stream, Ask an Expert

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What happens to the present value of a cash flow stream when the discount rate increases? Place this in the context of an investment.

If the required return on an investment goes up, but the expected cash flows do not change, are you willing to pay the same price for the investment, or to pay more or less for this investment than before the required return changed?

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Financial Management, Finance

Category:- Financial Management
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