The Procedure Used to Calculate the Present Value of Future

question 105

Multiple Choice

The procedure used to calculate the present value of future income is called

• A) indirect production.
• B) investment tax shelter planning.
• C) discounting.
• D) amortizing.

---

Definitions:

Consideration

A fundamental concept in contract law, referring to something of value that is exchanged between parties as part of an agreement.

Gratuitous Promise

A promise for which no consideration is given and which is not legally binding.

Conditional

Something that is subject to one or more conditions or requirements being met before it becomes fully effective or binding.

Future Events

Events or occurrences that have not yet happened but are expected or predicted to happen in the future.