The sum of the discount factors applicable to individual cash flows in a series of equal cash flows is called the:
A) single-sum, present-value factor.
B) total discount factor.
C) annuity discount factor.
D) compound discount factor.
E) internal rate discount factor.

Question

Quizplus · Accepted Answer

The annuity discount factor is used to calculate the present value of a series of equal cash flows, making it the correct term for the sum of the discount factors applicable to individual cash flows in such a series.

The Sum of the Discount Factors Applicable to Individual Cash