In present value method one has to account for *1 pointa. interest rate prevalent at a given timeb. exchange rate prevalent at a given timec. sales tax rate prevalent at a given timed. both income and sales tax rates prevalent at a given time

The correct answer is a. interest rate prevalent at a given time.

The present value method is a financial metric that is widely used in capital budgeting and investment planning. This method involves determining the worth of a future amount of money in today's terms, considering the time value of money.

Here's a step-by-step explanation:

1. Identify the future amount of money that will be received. This could be a future cash flow, future savings, or any other future amount.

2. Identify the interest rate prevalent at the given time. This is the rate at which the money could be invested today to grow to the future amount. This rate is also known as the discount rate.

3. Use the formula for present value to calculate the present value of the future amount. The formula is: PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

4. The result is the present value of the future amount, which is the amount that would need to be invested today, at the given interest rate, to grow to the future amount.

The present value method does not take into account exchange rates, sales tax rates, or income tax rates. It only considers the time value of money, which is represented by the interest rate.