In present value calculations, the process of determining the present value of a single sum of money is called:
A) pricing
B) discounting
C) allocating
D) negotiating

Question

Quizplus · Accepted Answer

The process of determining the present value of a single sum of money is known as discounting. This is because the process involves discounting a future sum of money back to its present value using a discount rate.

In Present Value Calculations, the Process of Determining the Present