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Question 11. In the equation below, the denominator can be considered the decimal value of...

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Accounting

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Question 11. In the equation below, the denominator can be considered the decimal value of risk. Adding the value of 1 to the denominator's decimal value mathematically decrease the quotient, e.g., 10/0.1-100 and 10/1.1-9.09. The quotient is decreased because the denominator discounts the numerator. The denominator is often called the discount rate. Explain why. (This question is worth 2 points) Asset Value = Net Cash Flow (1+ Rate) 1

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