1 answer

Discounting answers which of these questions? - what is the present value of money to be...

Question:

discounting answers which of these questions?

- what is the present value of money to be paid in the future?

- what is the future value of money to be paid in the present?


Answers

Correct option is (1).

Discounting is the process of converting future cash flow(s) in current period, using a specified discount (interest) rate. This is the current-period time value of money of future cash flows.

.

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