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What Is the Present Value (PV)of an Investment

Question 68

Multiple Choice

What is the present value (PV) of an investment?


A) the amount that an investment would yield if the benefit were realized today
B) the difference between the cost of the investment and the benefit of the investment in dollars today
C) the amount you need to invest at the current interest rate to re-create the cash flow from the investment
D) the amount by which the cash flow of an investment exceeds or falls short of the cash flow generated by the same amount of money invested at market rate
E) the amount of profit the investment would return if all benefits were realized today

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