Computing the present value of a future cash flow to determine what that cash flow is worth today is called:
A)compounding.
B)factoring.
C)time valuation.
D)simple cash flow valuation.
E)discounted cash flow valuation.

Question

Quizplus · Accepted Answer

Discounted cash flow valuation involves calculating the present value of a future cash flow by applying a discount rate, reflecting the time value of money.

Computing the Present Value of a Future Cash Flow to Determine