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What is the present value if an organization expects to make $100,000 four years from now and the annual interest rate is 6 percent?



A. $100,000
B. $79,000
C. $25,000
D. Zero

This question is part of Project Cost Management
Asked by Krystle, Last updated: Aug 10, 2020

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1 Answer

John Smith

John Smith

Answered May 04, 2017

$79,000

The present value of $100,000 four years from now can be calculated by using this formula: present value = FV / (1 + i)n. FV is the future value, i is the interest rate, and n is the number of time periods.
 

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