Question
Which of the following statements concerning the discounting process is correct? Discounting recognizes that a dollar to be received at some time in the future
Which of the following statements concerning the discounting process is correct?
| Discounting recognizes that a dollar to be received at some time in the future is worth more than a dollar to be received today. | ||
| Discounting produces a greater difference between a future value and a present value as the number of years over which the process takes place is reduced. | ||
| Discounting involves calculating a present value based on a known future value. | ||
| Discounting produces a greater difference between a future value and a present value as the rate of interest used in the process is reduced. |
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