The present value of $60,000 to be received in one year, at 6% compounded annually, is $56,604.
The present value is the idea that states an amount of cash nowadays is worth extra than that equal amount inside the destiny. In other words, money obtained within destiny isn't well worth as an awful lot as an identical quantity acquired nowadays. Receiving $1,000 these days is really worth extra than $1,000 five years from now.
In concept, an NPV is “correct” if it's miles more than zero. in the end, the NPV calculation already takes under consideration factors consisting of the investor's price of capital, opportunity price, and risk tolerance thru the discount rate.
Learn more about present value here:https://brainly.com/question/15904086
#SPJ4
