Mathematics · Financial Mathematics
Vitara Co is evaluating a project that will provide a one-off cash receipt of $250,000 at the end of Year 4. This amount is expressed in real terms (current prices). The general rate of inflation is 4% per year and the company's real required rate of return is 8%. What is the Present Value (PV) of this receipt (to the nearest $100)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$213,700
- 2$158,500
- 3$183,800✓
- 4$170,100
Correct answer
$183,800
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