Durant wants to know the current value of $10,000 he expects to receive in four years. Which of the following is the correct set up of the problem? Assume a five percent discount rate.

Group of answer choices

Present Value = $10,000 / 1.20

Present Value = $10,000 X 1.05 X 4

Present Value = $10,000 / 1.054

Present Value = $10,000 X 1.054