6. What is the present value of £1,000,000 received in both one and two years’ time at the 15% rate?

& £870,000þ£756,000 ¼ £1,626,000

& £1,000,000þ£1,000,000 ¼ £2,000,000

& £1,000,000þ£870,000 ¼ £1,870,000

& £1,500,000

& £870,000þ£862,000 ¼ £1,732,000