According to the rate of return approach, present value is equal to ΣX_n/(1 - i)ⁿ.

Name: According to the rate of return approach, present value is equal to ΣX n /(1 - i) n .
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Quizplus · Accepted Answer

The rate of return approach typically involves calculating the present value of an investment by discounting future cash flows or returns back to their present value using a specific rate of return, not by using the formula provided.

According to the Rate of Return Approach, Present Value Is