Restating future cash flows in terms of their present value is called discounting.

Question

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Discounting is the process of determining the present value of future cash flows by adjusting them for the time value of money. This involves taking into account the rate of interest or discount rate and the time period over which the cash flows are expected to occur. By converting future cash flows into their present value, investors and analysts can compare the value of alternative investment opportunities and make informed decisions about which investments are most attractive.

Restating Future Cash Flows in Terms of Their Present Value