The process of finding present values is frequently called ____.
A) annualizing
B) compounding
C) discounting
D) leasing

Question

Quizplus · Accepted Answer

The process of finding present values is commonly referred to as discounting. This involves taking into account the time value of money and adjusting future cash flows to their current values. Annualizing refers to converting data from one time period to an annual basis, compounding refers to the process of calculating future values, and leasing refers to the use of a contractual agreement to gain access to an asset for a specific period of time.

The Process of Finding Present Values Is Frequently Called ____