The Present Value Formula for a Cash Flow Expected One

question 9

Multiple Choice

The present value formula for a cash flow expected one period from now is:

• A)PV = C₁ × (1 + r).
• B)PV = C₁/(1 + r).
• C)PV = C₁/r.
• D)PV = (1 + r)/C₁.

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