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What is the present value of a cash flow in the amount of $1,000 that occurs today, if the discount rate is 10%

User Eestein
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1 Answer

7 votes

Answer:

the present value is $1,000

Step-by-step explanation:

The computation of the present value of the cash flow today is as follows:

Given that

Cash Flow, Today = $1,000

Discount Rate = 10%

Based on the above information

Present Value = Cash Flow Today = $1,000

It means that the present value should be equivalent to the cash flow today

hence, the same is to be considered

Therefore the present value is $1,000

User Nurjan
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