The Present Value: exercise What is the PV of $100 received in: 4.
{"Image DocumentName": "The present value formula", "Image ImageDescription": "We can try to answer to following questions: How much we need to invest today to produce   at the end of second year? What\u2019s the present value (PV) of this   pay-off. The present value of this future payment is: Present Value =PV= Ct/(1+r)t. Where. Ct is cash flow amount received at the end of year t, r is the discount rate, 1/(1+r)t is called the discount factor.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}