What information do you need to calculate the present value

Reference no: EM131919407

Problem

1. Suppose you know that an investment will earn a positive return in the future. Why is it important to know the present value of the investment?

2. Suppose you are selling a piece of furniture to a friend who can't afford to pay you upfront but offers to pay you in monthly installments for the next year. What information do you need to calculate the present value of this offer?

Reference no: EM131919407

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