Suppose that interest rates are always positive. Then the present value of a cash flow is at most its time value at t=2.
Is this true or false?
I think it is false. My reasoning is because the present value of a cash flow at a certain point in time depends on the interest rate and the time value of the cash flow, not just its time value at a specific point in time (like t=2). Therefore, the statement is not accurate.
Can someone tell me if I'm right or wrong?
Thank you.