Present value is based on
A) the dollar amount to be received.
B) the length of time until the amount is received.
C) the interest rate.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Present value takes into account the dollar amount to be received, the length of time until the amount is received, and the interest rate. All three factors affect the present value of future cash flows.

Present Value Is Based on