Final answer:
The Present Value (PV) is calculated by dividing the cash outflow by the interest rate.
Step-by-step explanation:
The present value (PV) is the current value of all future cash flows discounted at a given interest rate. To calculate the present value of all future cash flows, you need to sum up the present value of each cash flow. In this case, you have an initial cash outflow of $50 and a present value of all future cash flows of $150.
To find the Present Value (PV), you can use the formula:
PV = Cash Outflow / (1 + Interest Rate)
Plugging in the values, we get:
PV = $50 / (1 + 0)
PV = $50