What Is the Variable Used to Predict Another Variable Called

question 9

Multiple Choice

What is the variable used to predict another variable called?

• A)Independent variable
• B)Dependent variable
• C)Important variable
• D)Causal variable

---

Definitions:

Discount Rate

The Discount Rate represents the interest rate applied to calculate the present value of future cash flows within discounted cash flow analysis.

Present Value

The worth as of today of a future money sum or cash flow series, taking into consideration a specific rate of return.

Present Values

This is a concept in finance that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Discount Rate

This rate is applied in the framework of DCF analysis for the purpose of calculating the current value of foreseeable cash flows.