The valuation calculating the present value of a future cash flow to determine its value today is called __________ valuation.
A)complex
B)current
C)discounted cash flow
D)future cash flow
E)compound cash flow

Question

Quizplus · Accepted Answer

Discounted cash flow valuation calculates the present value of a future cash flow by using a discount rate to account for the time value of money. It is a commonly used technique in finance to value assets such as stocks, bonds, and real estate.

The Valuation Calculating the Present Value of a Future Cash