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What is the formula for the present value of a single future cash flow?A) FV × (1 + r)^nB) FV ÷ (1 + r)^nC) FV × r × nD) FV × (1 - r)^n

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

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Question

What is the formula for the present value of a single future cash flow?
A) FV × (1 + r)^n
B) FV ÷ (1 + r)^n
C) FV × r × n
D) FV × (1 - r)^n

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