Present value of future cash inflows


What is the present value of $1,000 to be received at the end of one year if it must provide a return of 5%? What is the present value of $1,000 to be received at the end of two years? Three years? What can you conclude about the effect of time until receipt on the present value of future cash inflows?

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Finance Basics: Present value of future cash inflows
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