Determining the future value of one or more previous cash flows is known as ________.
A)disinvesting
B)compounding
C)discounting
D)annuitizing

Question

Quizplus · Accepted Answer

Compounding involves determining the future value of a present cash flow by applying a growth factor, typically an interest rate or rate of return. Disinvesting refers to selling or divesting an investment, while discounting involves determining the present value of a future cash flow. Annuitizing refers to converting a lump sum of money into a series of regular payments.

Determining the Future Value of One or More Previous Cash