The process of determining present value removes the cost of interest from future cash flows to determine the value of the amount today.

Name: The process of determining present value removes the cost of interest from future cash flows to determine the value of the amount today.
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Quizplus · Accepted Answer

This is because present value calculation takes into account the time value of money and adjusts future cash flows by discounting them by the appropriate interest rate to determine their value today.

The Process of Determining Present Value Removes the Cost of Interest