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netineya [11]
3 years ago
7

What is the process of determining the present value called?

Business
1 answer:
Naddika [18.5K]3 years ago
4 0

Answer:

Discounting

Explanation:

The present value of a payment or strings of payments is the future worth of the payment at a later date.

Discounting, according to the question, can be defines as a process of determining the present value of a commodity or payments that are to be received at a later date.

It can also be called compound discounting. This is because it can also be used to determine the present value of a series of payments as well.

Present value is involves discounting the interest rate from the future amount.

Cheers.

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True or False Statements about the conceptual framework:

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