Start now if you want your child to become a tennis multi-millionaire and keep you in old age, though there are much better reasons to get them playing, says Andrew Baker. Smashing fun: four-year-old Lucy works on her double-handed forehand.
38) What is the relationship between present value and future value interest factors? <br />A. The present value and future value factors are equal to each other.<br />B. The present value factor is the exponent of the future value factor.<br />C. The future value factor is the exponent of the present value factor.<br />D. The factors are reciprocals of each other.<br />E. There is no relationship between these two factors.</p>.
Net present value (NPV) is determined by calculating the costs (negative cash flows) and benefits (positive cash flows) for each period of an investment. The period is typically one year, but could be measured in quarter-years, half-years or months. After the cash flow for each period is calculated, the present value (PV) of each one is achieved by discounting its future value (see Formula) at a periodic rate of return (the rate of return dictated by the market).