Discounting is the process of
A)cutting prices to get rid of surplus stocks.
B)finding the present value of future dollars.
C)finding the future value of present dollars.
D)giving special concessions to special customers.

Question

Quizplus · Accepted Answer

Discounting is the process of finding the present value of future dollars. It is used in finance to determine the current worth of a future payment or investment, taking into account the time value of money. It involves calculating the present value using an interest rate, which represents the opportunity cost of investing the money elsewhere.

Discounting Is the Process of