The process of restating future cash flows in terms of their present values is called:
A) Discounting.
B) Capital budgeting.
C) Payback period.
D) Risk uncertainty.
E) Accounting rate of return.

Question

Quizplus · Accepted Answer

The process of restating future cash flows in terms of their present values is called discounting. This is a fundamental concept in finance and is used to calculate the net present value (NPV) of an investment or project. Other choices listed are unrelated or incorrect.

The Process of Restating Future Cash Flows in Terms of Their