In which of the following situations would it not be appropriate to use the following formula: when determining the present value (PV)of a cash flow stream?
A)when yield curves are flat
B)when short-term and long-term interest rates vary widely
C)when the inflation rate is high
D)when the discount rate is high
E)when the real interest rate is high

Question

In which of the following situations would it not be appropriate to use the following formula:  when determining the present value (PV)of a cash flow stream?
A)when yield curves are flat 
B)when short-term and long-term interest rates vary widely 
C)when the inflation rate is high 
D)when the discount rate is high 
E)when the real interest rate is high

Quizplus · Accepted Answer

The Answer of In which of the following situations would it not be appropriate to use the following formula:  when determining the present value (PV)of a cash flow stream?
A)when yield curves are flat 
B)when short-term and long-term interest rates vary widely 
C)when the inflation rate is high 
D)when the discount rate is high 
E)when the real interest rate is high

In Which of the Following Situations Would It Not Be