Question: Finding a present value is the reverse of finding a future value. Which of the following is true about finding the present value of cash

Finding a present value is the reverse of finding a future value.
Which of the following is true about finding the present value of cash flows?
Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a
specified rate of return.
Finding the present value of cash flows tells you what a cash flow will be worth in future years at a specified rate of return.
 Finding a present value is the reverse of finding a future

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!