Lucas expects to receive a sales bonus of $$7,500$ one year from now. The process of determining how much that bonus is worth today is called:

A$)$ aggregating.

B$)$ discounting.

C$)$ simplifying.

D$)$ compounding.

E$)$ extrapolating.

Computing the present value of a future cash flow to determine what that cash flow is worth today is called:

A$)$ compounding.

B$)$ factoring.

C$)$ time valuation.

D$)$ simple cash flow valuation.

E$)$ discounted cash flow valuation.

The relationship between the present value and the investment time period is best described as:

A$)$ direct.

B$)$ inverse.

C$)$ unrelated.

D$)$ ambiguous.

E$)$ parallel.