The Process of Determining the Present Value of Future Cash

question 31

Multiple Choice

The process of determining the present value of future cash flows in order to know their worth today is called which one of the following?

• A)compound interest valuation
• B)interest on interest computation
• C)discounted cash flow valuation
• D)present value interest factoring
• E)complex factoring

---

Definitions:

Observations

Data points collected during an experiment or study.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or a system without violating any constraints.

Multiple Regression

A statistical method that predicts the behavior of a dependent variable based on two or more independent variables.

Estimated Regression

A statistical method for estimating the relationships among variables, often used to predict the value of a dependent variable based on values of independent variables.