Question: 17

If the opportunity cost of capital is 9%, what is the appropriate interval for the present value of $374 paid in 9th year:

INSTRUCTIONS

In this question we have to find out the present value of the cash flow, that will be paid in the 9th year from now, with the opportunity cost of 9%.

Given: Cash flow, Opportunity Cost

Define a function with the name "present_value" which will take two arguments, cashflow and opportunity cost.
The signature of the function should be like:

def present_value(future_value, opportunity_cost, time):

Use the following formula to find out the present value of the amount you will pay at the end of 9th year, using the opportunity cost.

Formula:

Present value = Cash flow/ (1+ opportunity cost)**9

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