If we use future value rather than present value to decide whether to make an investment:
A)we will make a bad decision,since the future value will always be higher if the discount rate is positive.
B)we will make a bad decision,since the future value will always be lower if the discount rate is positive.
C)we will make the same decision using either future value or present value.
D)There is not enough information given to answer the question.

Question

Quizplus · Accepted Answer

Using either future value or present value will lead to the same decision because they are equivalent ways of evaluating an investment.

If We Use Future Value Rather Than Present Value to Decide