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

Question

Quizplus · Accepted Answer

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

The Current Value of Future Cash Flows Discounted at the Appropriate