You are explaining time value of money factors to your friend. Which factor would you explain as being larger? Group of answer choices A. The future value of $1 for 12 periods at 6% is larger. B. The present value of $1 for 12 periods at 6% is larger. C. Neither one is larger because they are equal. D. There is not enough information given to answer this question

You are explaining time value of money factors to your friend. Which factor would you explain as being larger? Group of answer choices A. The future value of $1 for 12 periods at 6% is larger. B. The present value of $1 for 12 periods at 6% is larger. C. Neither one is larger because they are equal. D. There is not enough information given to answer this question

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4MC: You are explaining time value of money factors to your friend. Which factor would you explain as...

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You are explaining time value of money factors to your friend. Which factor would you explain as being larger?A. The future value of $1 for 12 periods at 6% is larger.B. The present value of $1 for 12 periods at 6% is larger.C. Neither one is larger because they are equal.D. There is not enough information given to answer this question.
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you have mistake in calculation please check and advise Present value FACTOR =1-(1.11)^-7/0.11 Present value FACTOR =4.7121962646 how you get this answer submitted Question was An investment under consideration has a payback of seven years and a cost of $685,000. Assume the cash flows are conventional. If the required return is 11 percent, what is the worst-case NPV? What is the best case NPV?
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