The measurement of an asset's value based on the discounted future cash flows relating to the asset is
A) net realizable value.
B) future value.
C) historical value.
D) present value.

Question

Quizplus · Accepted Answer

The measurement of an asset's value based on the discounted future cash flows relating to the asset is known as its present value. This method discounts future cash flows back to their value in today's dollars, providing a way to assess the current worth of future earnings or cash inflows.

The Measurement of an Asset's Value Based on the Discounted