The concept of present value is a sum payable in the present is worth less in the future than in the stated amount today.

Name: The concept of present value is a sum payable in the present is worth less in the future than in the stated amount today.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The concept of present value actually states that a sum of money is worth more today than the same sum will be in the future, due to its potential earning capacity. This principle underlies the basis of discounting cash flows.

The Concept of Present Value Is a Sum Payable in the Present