Discounting is:

Question

Discounting is:

Quizplus · Accepted Answer

Discounting involves calculating the present value of future cash flows. This is done by using a discount rate, which represents the cost of borrowing or the expected return on an investment, to adjust the future cash flows to their current value. Option A is incorrect because it refers to calculating the future value of present cash flows, which is not related to discounting. Option C is also incorrect because discounting involves pulling future values to the present, not the other way around. Option D is incorrect because one of the options is correct.

Discounting Is