Business Finance Net present value
Question:
The process of finding the present value of some future amount is called:
a. complexing.
b. discounting.
c. valuing.
d. reducing.
e. compounding.
Present Value
Present Value refers to the amount or value today of a sum of money to be received in the future. This is in the concept that the amount of money today is greater than the same amount of money to be received in the future.
Answer and Explanation:1
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Answer: b. discounting.
The process of finding the present value of some future amount is called discounting. Finding the present value of some...
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How to Calculate Present Value of an Investment: Formula & Examples
from
Chapter 24/ Lesson 15
23K
Calculating the present value of an investment tells how much money needs to be saved now in order to reach a desired, future amount. Explore the definition of and formula for the present value of an investment, and see examples.
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