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Nuetrik [128]
2 years ago
8

An investment will pay you $95,000 in 10 years. If the appropriate discount rate is 9 percent compounded daily, what is the pres

ent value
Business
1 answer:
olga2289 [7]2 years ago
5 0

The present value of the investment future value is $38,628.40

What is present value?

Present value is the today's worth of a future amount when discounted or expressed in today's dollar equivalence.

The present value of a single future cash flow can be determined using the present value formula below:

PV=FV/(1+r/365)^(N*365)

PV=present value=unknown

FV=future value=$95,000

r=discount rate=9%

N=number of years before the future amount is received=10

365 is an indication of number of years in a year since discounted is compounded daily.

PV=$95,000/(1+9%/365)^(10*365)

PV=$38,628.40

The present value can be further understood using the link below:

brainly.com/question/18490474

#SPJ1

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A​ firm's operating cash flow​ (OCF) is defined as​ ________. A. gross profit minus operating expenses B. EBIT times one minus t
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Answer:

B. EBIT times one minus the tax rate plus depreciation

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