1. What is the differences between future value and present value?

- The differences between the future value and present value is that the present value
is about the amount that is being invested today at a prevailing interest rate that
generates the given future value which is that the value of the current assets at a
future date that is based on the rate of growth.
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2. What is present value analysis? How its helps an entity in maximizing profit?
- Present value talks about the investments that is being invested today on a prevailing
interest rate, this can help an entity to maximize its profit through the cash flows as it
is associated with a business decision that can spread over a number of periods. And
if the profit is sustainable it is because of choosing the best investments or projects
that can help maintain the value of the firm.

3. What is marginal analysis? Explain how optimum decision are made using this
analysis?
- The marginal analysis states the optimal amount of managerial decisions involves
comparing the marginal or the incremental benefits which benefits the decisions of the
marginal costs. The optimum decisions are made using this analysis the actions that
is being taken whenever its marginal benefit will give you a positive result. Also if the
marginal benefits exceeds the marginal cost.