According to the discounted future earnings technique,a dollar earned in the future is worth more than a dollar earned today.

Question

Quizplus · Accepted Answer

According to the discounted future earnings technique, a dollar earned today is worth more than a dollar earned in the future. This is because of the time value of money, which states that money available today can earn interest or investment returns, while money received in the future is subject to inflation and uncertainty. Therefore, the technique uses discounting to adjust the value of future earnings to today's dollars.

According to the Discounted Future Earnings Technique,a Dollar Earned in the Future