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A method by which one can compare cash flows across time, either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is
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A method by which one can compare cash flows across time, either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is called Group of answer choices

User Dmitry Egorov
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Answer:

Time value of money

Step-by-step explanation:

The time value of money refers to the financial concept which said that the value at present would generate higher benefit than in the future period. It is also known as discounted value at present

The formulas are shown below:-

Present Value = Future Value ÷ (1 + Discount Rate)

Future Value = Present Value × (1 + Discount Rate)

User Dmitrii Erokhin
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