Asked by juan manuel iglesias on Jul 18, 2024
Verified
The present value of a future stream of cash flows is what that stream
A) was worth in yesterday's dollars.
B) is worth in today's dollars.
C) will be worth in future dollars.
D) might be worth in future dollars.
Present Value
The current value of a future sum of money or stream of cash flows, given a specified rate of return.
- Acquire knowledge of the core concepts related to financial evaluation within supply chains, such as discounting cash flows and figuring out rates of return.
Verified Answer
MB
Madeline BuistJul 22, 2024
Final Answer :
B
Explanation :
Present value is the current value of a future stream of cash flows discounted back to today. It takes into account the time value of money and inflation, determining what it is worth in today's dollars. Therefore, option B is the best choice. Options A, C, and D do not accurately describe the concept of present value.
Learning Objectives
- Acquire knowledge of the core concepts related to financial evaluation within supply chains, such as discounting cash flows and figuring out rates of return.