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Procedure of finding present values in time value of money is...

This question belongs to Commerce Financial Management
Financial Management
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Procedure of finding present values in time value of money is classified as

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Correct Answer: Option B
Procedure of finding present values in time value of money is classified as discounting. Discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future. Given the time value of money, a dollar is worth more today than it would be worth tomorrow. Discounting is the primary factor used in pricing a stream of tomorrow's cash flows.
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