Knowing how to translate between present and future value can be useful when:
A) the benefits and opportunity cost occur at different times.
B) there are benefits and costs occurring at the same time.
C) the current costs are higher than the present benefits.
D) there are no benefits and costs.

Question

Quizplus · Accepted Answer

When benefits and opportunity cost occur at different times, it is important to be able to calculate their present and future values in order to make informed financial decisions. For example, if you are considering investing in a project that will generate income in the future, you need to know the present value of the potential income in order to evaluate whether it is worth the investment. Similarly, if you are deciding between taking a job with a higher salary or one with better benefits over time, you need to compare the present values of the two options in order to make the best decision for your financial situation.

Knowing How to Translate Between Present and Future Value Can