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August 1, 2014

Homework Help: Accounting

Posted by Highly confused on Thursday, April 1, 2010 at 12:11pm.

I am so confused on how to answer this question given from my instructor. I see many websites that pertain to present value. Is there an explanation somewhere on the internet that would help explain? I googled the question and found"Net present value - Wikipedia, the free encyclopedia", and "NPV and IRR -- Measures for Evaluating Investments." The question given to us is:

Why is the present value of any future amount greater when the discount rate is lower?

Please help!

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