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    Principles of Corporate Finance Study Set 3
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    Exam 2: How to Calculate Present Values
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    The Present Value Formula for a Cash Flow Expected One
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The Present Value Formula for a Cash Flow Expected One

Question 9

Question 9

Multiple Choice

The present value formula for a cash flow expected one period from now is:


A) PV = C1 × (1 + r) .
B) PV = C1/(1 + r) .
C) PV = C1/r.
D) PV = (1 + r) /C1.

Correct Answer:

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