The current value of future cash ﬂows discounted at the appropriate discount rate to current time is called the _____ value.
A) Principal.
B) Future.
C) Present.
D) Simple.
E) Compound.

Question

Quizplus · Accepted Answer

The current value of future cash flows discounted at the appropriate discount rate to current time is called the present value. This is because it reflects the value of the cash flows in today's dollars, taking into account the time value of money.

The Current Value of Future Cash ﬂOws Discounted at the Appropriate