You are calculating the present value of $10,000 that you will receive five years from now. Which table will you use to calculate the present value of that $10,000?
A)Present Value of $1 table
B)Future Value of $1 table
C)Present Value of Ordinary Annuity of $1 table
D)Future Value of Ordinary Annuity of $1 table

Question

Quizplus · Accepted Answer

To calculate the present value of a future cash flow, the Present Value of $1 table is used. This table helps to determine the value of an amount in today's dollars based on the future value of that amount and the time frame in which the payment is due.

You Are Calculating the Present Value of $10,000 That You