To determine the present value of any future amount, you need to know
A)the opportunity cost.
B)the stated maximum rate of return.
C)the future amount to be received.
D)the depreciation expense on the asset to be acquired.

Question

Quizplus · Accepted Answer

To determine the present value of any future amount, you need to know the future amount to be received. Other factors such as opportunity cost and maximum rate of return may also be important in determining the present value, but they are not essential in identifying the future amount to be received. Depreciation expense on the asset to be acquired is not relevant to determining the present value of a future amount.

To Determine the Present Value of Any Future Amount, You