A ____ rate is the rate used in discounting future cash flows.
A) prime
B) markup
C) cash flow
D) discount

Question

Quizplus · Accepted Answer

The discount rate is the rate that is used to determine the present value of future cash flows by discounting them back to their current value. The rate reflects the time value of money and takes into account factors such as inflation, risk, and opportunity cost. The other options do not relate specifically to discounting future cash flows.

A ____ Rate Is the Rate Used in Discounting Future