The measurement of an asset's value that considers the discounted future cash inflows (and outflows) relating to the asset is called the
A) net realizable value
B) future value
C) historical value
D) present value

Question

Quizplus · Accepted Answer

The measurement that considers the discounted future cash inflows (and outflows) is known as present value. Therefore, the best choice is D, which represents present value.

The Measurement of an Asset's Value That Considers the Discounted