The numerator for the quick ratio is calculated by: Select one: a. Deducting inventory and prepaid expenses from total assets b. Dividing current assets by current liabilities c. Adding cash plus inventory d. Adding short-term investments and accounts receivable to cash

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.