The present value of a given sum to be received in five years will be exactly twice as great as the present value of an equal sum to be received in ten years.

Question

Quizplus · Accepted Answer

The present value of a sum depends on the discount rate. For the present value of a sum in five years to be exactly twice that of the same sum in ten years, a specific discount rate would be required, which is not generally the case.

The Present Value of a Given Sum to Be Received