The value today of the dollars to be paid or received in the future is referred to as
A)present value.
B)future value.
C)present and past values.
D)net cash flows.

Question

Quizplus · Accepted Answer

The value today of the dollars to be paid or received in the future is known as present value. Future value refers to the value of an investment at a specific date in the future. Present and past values do not specifically refer to the value of dollars at a particular time. Net cash flows refer to the difference between cash inflows and outflows in a given period.

The Value Today of the Dollars to Be Paid or Received