True or false: Present Value should be entered as a positive in the calculator (no specific...

Question

Question

True or false:

Present Value should be entered as a positive in the calculator

(no specific calculator mentioned in the question)

Answer 1

Answer #1

False

Reason : In BA II plus calculator any cash outflow must be indicated by negative sign

For Example

One deposits $100 for 1 year at rate of 10%, Here PV = $100

Here one is depositing $100, means he is paying to the bank and thus it is cash outflow for him, thus one has to enter -100 and then press PV

Hence Present value should be entered as negative in the calculator

Answer 2

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