If the interest rate is 10 percent, the net present value of $600 to be received two years from now is

Name: If the interest rate is 10 percent, the net present value of $600 to be received two years from now is
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The net present value (NPV) is calculated using the formula NPV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. For $600 received in two years at a 10% interest rate, NPV = 600 / (1 + 0.10)^2 = $495.87.

If the Interest Rate Is 10 Percent, the Net Present