The present value of benefits (PVB) is found as A) the discounted value of benefits for a single period without adjusting for inflation B) Σ(b_t/[1+r_s]^t), with b_t= B_t/(1 + p)^t C) Σ(b_t/[1-r_s]^t), with b_t= B_t/(1 + p)^t D) Σ(b_t/[1+r_s]^t), with b_t= B_t/(1 - p)^t

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Quizplus · Accepted Answer

The present value of benefits (PVB) is the discounted value of benefits for a single period without adjusting for inflation. The formula for PVB is Σ(b_t/[1+r_s]^t), with b_t= B_t/(1 + p)^t. This formula takes into account the time value of money by using a discount rate (r) and adjusts for future cash flows by discounting them to their present value.

The Present Value of Benefits (PVB) Is Found as