Computing the Present Value of a Future Cash Flow to Determine

question 5

Multiple Choice

Computing the present value of a future cash flow to determine what that cash flow is worth today is called:

• A)compounding.
• B)factoring.
• C)time valuation.
• D)simple cash flow valuation.
• E)discounted cash flow valuation.

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Definitions:

Psychological Approach

A method or strategy in psychology that focuses on understanding mental processes, behaviors, and emotional responses of individuals.

Behavior And Consciousness

Refers to the study of how actions (behavior) are influenced by or related to one's awareness and thought processes (consciousness).

Stream Of Consciousness

A narrative mode that attempts to capture the flow of thoughts and feelings running through the mind.

Functionalists

A perspective in sociology and psychology that emphasizes the importance of understanding the purpose or function of behavior and social institutions.