Present value can be defined as which of the following?
A)Future amount of a sum of money held now.
B)Value today of future cash inflow(s).
C)Maturity value of a debt.
D)Sum of cash inflows over a future period of time.

Question

Quizplus · Accepted Answer

Present value is the current value of future cash inflows, which means it is the amount of money that would need to be invested today to achieve a certain amount of cash inflow(s) at a future date. Option A and D describe future amounts or cash inflows, while option C describes the value of a debt at maturity.

Present Value Can Be Defined as Which of the Following