In order to discount multiple cash flows to the present, one would use
A) the appropriate compound rate.
B) the appropriate discount rate.
C) the appropriate simple rate.
D) the appropriate tax rate.

Question

Quizplus · Accepted Answer

The appropriate discount rate is used to discount multiple cash flows to the present value. This rate reflects the time value of money, accounting for the risk and potential return of alternative investments.

In Order to Discount Multiple Cash Flows to the Present