When we express the value of a cash flow or series of cash flows in terms of dollars today,we call it the ________ of the investment.If we express it in terms of dollars in the future,we call it the ________.
A)present value;future value
B)future value;present value
C)ordinary annuity;annuity due
D)discount factor;discount rate

Question

Quizplus · Accepted Answer

When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the present value. If we express it in terms of dollars in the future, we call it the future value. Therefore, choice A is the correct answer. Choice C and D refer to different concepts and are not relevant to the question.

When We Express the Value of a Cash Flow or Series