If a 10% Discount Rate Is Used, What Is the Present

question 2

Multiple Choice

If a 10% discount rate is used, what is the present value of the following two cash inflows?
£1,600 received in one year's time, plus
£2,000 received in two years' time.

• A) £3,116
• B) £2,988
• C) £3,276
• D) £3,148

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