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27 June, 22:46

What is the process of determining the present value called?

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  1. 28 June, 02:26
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    Discounting

    Explanation:

    The present value of a payment or strings of payments is the future worth of the payment at a later date.

    Discounting, according to the question, can be defines as a process of determining the present value of a commodity or payments that are to be received at a later date.

    It can also be called compound discounting. This is because it can also be used to determine the present value of a series of payments as well.

    Present value is involves discounting the interest rate from the future amount.

    Cheers.
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