Present value is defined as:
A)the cash price of the asset when it was purchased.
B)the present price of any given product or service.
C)the selling price.
D)the discounted value of future cash flows.

Question

Quizplus · Accepted Answer

Present value is the discounted value of future cash flows, meaning it is the current value of a future payment or stream of payments, taking into account the time value of money and discounting them back to their present value.

Present Value Is Defined As