I know this has been discussed in the past, but I cant find a prior thread. In what situations would we PV an upcoming cash outlay and in which situations would we not?
within one year if nothing mentioned and risk free rate is given. Some questions, they will give you the P.V. As far as I have seen, questions give you PV if they have multiple cash flows at different periods.
Okay. So if no rfr given and cash outlay within the year, I guess it’s safe to assume we take the full amount out of investable assets, and if rfr given we take the PV out of assets. Sounds good to me. Thanks.