The Current Worth of Future Income After It Is Discounted

question 53

Multiple Choice

The current worth of future income after it is discounted, to reflect the fact that future dollars are worth less than current dollars, is called

• A) the net present value of the income.
• B) arbitrage.
• C) the inflationary premium.
• D) the real interest rate.

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Definitions:

Centralization

A process where decision-making authority is concentrated at a single point in the organization, often at the top management level.

Buying Specialization

A procurement approach where purchasing responsibilities are divided amongst team members based on specific categories of goods or services.

Purchasing Consortium

A group of companies or organizations that join together to pool their purchasing power, aiming to negotiate better terms and prices from suppliers.

Collaborative Purchasing

A strategy where multiple organizations come together to negotiate and buy products or services to achieve cost savings and other buying synergies.