Discounting calculates which value of an amount to be received?

Question

Quizplus · Accepted Answer

Discounting is a method used to determine the present value of future cash flows. Therefore, the correct answer is A, Present. The future value refers to the amount of money that an investment will grow to over time, while the payback period is the amount of time required for an investment to pay for itself in profits. Historical value refers to the original cost or value of an asset or investment in the past.

Discounting Calculates Which Value of an Amount to Be Received