**Which one of the following variables is the exponent in the present value formula?**

A. Present Value

B. Interest Rate

C. Number of time periods

D. Future Value

E. There is no exponent in the present value formula

**Answer Explanation for Question: Which one of the following variables is the exponent in the present value formula?**

The formula to calculate present value is:

Present Value = FV/ (1+i)^n

Where,

FV= Face Value

r = Rate of return

n = number of time periods

Therefore, number of time period is the exponent in the present value formula.

Which of the following is a present value method of analyzing capital investment proposals?