You are explaining time value of money factors to your friend. Which factor would you explain as being larger?A. The future value of $1 for 12 periods at 6% is larger.B. The present value of $1 for 12 periods at 6% is larger.C. Neither one is larger because they are equal.D. There is not enough information given to answer this question.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4MC: You are explaining time value of money factors to your friend. Which factor would you explain as...
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You are explaining time value of money factors to your friend. Which factor would you explain as being larger?
A. The future value of $1 for 12 periods at 6% is larger.
B. The present value of $1 for 12 periods at 6% is larger.
C. Neither one is larger because they are equal.
D. There is not enough information given to answer this question.

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