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

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?

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Answer #1

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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