In present value calculations the process of determining the present value is called
A) allocating.
B) pricing.
C) negotiating.
D) discounting.

Question

Quizplus · Accepted Answer

Present value calculations involve discounting future cash flows to their present value using a discount rate. Therefore, the process of determining the present value is called discounting. Choices A, B, and C are not accurate descriptions of this process.

In Present Value Calculations the Process of Determining the Present