Examlex
The two-point discrimination test can be used to measure:
Present Value
The valuation today of an incoming stream of cash or one-time future payment, after accounting for a specified rate of return.
Cash Outflows
Money or cash disbursed by the business for various purposes, such as paying expenses, investing in assets, or repaying debts.
Cash Inflows
Money received by a business from its various activities, including sales, financing, and investments.
Discounting
The process of determining the present value of a payment or a stream of payments that is to be received in the future.
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