PMP Question
Submitted by rishibhardwaj121 on Fri, 12/19/2014 - 13:22
Q : Your business partner is ready to invest $110,000 in your company one year from now. The interes rate used in your company to calculate Present Value (PV) of expected yearly benefits and cost is 10%. What is the PV of this investment?
A. $112,000
B. $100,000
C. $80,000
D. $110,000
Forums:
vishnu.v
Sun, 12/21/2014 - 05:58
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Formulae
PV=FV/(1+i)n
i=10%=0.1
n= 1 year
FV=$110,000
PV=110000/(1+0.1)1=110000/1.1=$100000