Which statement is true about the present value of a dollar that will be received n years from now?

A) It is always negative.
B) It is worth less than a dollar received in the future.
C) It is worth more than a dollar received in the future because of inflation.
D) None of the statements is true.

The present value of a dollar received in the future is calculated to determine what that future dollar is worth in today's terms, taking into account the time value of money. None of the provided statements accurately describe this concept. Statement A is incorrect because the present value is not negative. Statement B is incorrect because it confuses the concept, implying the present value is less than the future value, which contradicts the principle of the time value of money. Statement C is incorrect because it suggests the present value is more due to inflation, which is a misunderstanding; the present value is considered more valuable today due to the potential earning capacity of that dollar if invested.