What Is the Present Value of a Payment of $100

question 321

Multiple Choice

What is the present value of a payment of $100 to be made one year from today?

• A)$100*(1 + r)
• B)$100/(1 + r)
• C)$100 - $100r
• D)$100 - (1 + r)/$100

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Definitions:

Projections

Estimates or forecasts of future financial performance or trends, often based on current data and assumptions.

Debt

Debt represents money or goods that one party owes to another under the condition that it is to be repaid at a future date, often with interest.

Financing Dollars

Funds that are provided for business operations, investments, or other purposes requiring financial support, often in the context of corporate finance or lending.

Costs

The amount of money required to produce, maintain, or acquire a product or service, including direct, indirect, fixed, and variable components.