what is a present value, and why is it important to be able to calculate it$?$

According to Dr$.$ Boudreaux, an asset's present, or

$,$ value is the current value of the cash flows that it will pay or$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

receive in the future.

can you give me an example of when it would be appropriate to calculate a present value?

Sure, but it might make more sense for you to identify a situation in which calculating a present value is appropriate. So$,$ in which of

the following two scenarios would you use a present value calculation, and then explain why that is so:

Scenario $1$: You would like to know how much you should place on deposit to have accumulated a certain amount of money by a specific

future date.

Scenario $2$: You would like to know how much a given amount deposited today will grow into by a specific future date.

I think $\_\_\_\_\_\_\_\_\_\_\_\_$

is the situation that requires the calculation of a present value.

The reason is that the amount to be placed on deposit is both$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

and occurs$\_\_\_\_\_\_\_\_\_\_\_\_\_$