A method by which one can compare cash flows across time,either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is called
A)time-value of money.
B)compounding.
C)simple interest.
D)marginal analysis.

Question

Quizplus · Accepted Answer

The method described in the question is the time-value of money, which involves calculating the present value or future value of cash flows by taking into account the time value of money and the potential for interest, inflation, or other factors to affect the value of money over time. Compounding and simple interest are related concepts, but they specifically refer to the calculation of interest earned on an investment over time. Marginal analysis is a different concept altogether, unrelated to the comparison of cash flows across time.

A Method by Which One Can Compare Cash Flows Across