Answer:
The correct answer is $1,000
Explanation:
According to the scenario, Given data are as follows :
Cash flow = $100
Interest rate = 10%
So, present value can be calculated by following method:
Present value = Cash Flow / Interest Rate
Present value = $100 / 10%
Present value = $100 / 0.1
Present value = $1,000
Hence, the correct answer is $1000.
