Given that the Billingsgate Battery Company could invest its money at a rate of 20 per cent a year, what is the present (immediate) value of the expected first year receipt of £20,000? In other words, if, instead of having to wait a year for the £20,000 and, therefore, deprived of the opportunity to invest it at 20 per cent, the business could have some money now, what sum would be equivalent to getting £20,000 in one year’s time?