present value of equity
future value of equity
present value cash flow
future value of cash flow
✅ The correct answer is C.
First step in calculation of net present value is to find out present value cash flow. Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
First step in calculation of net present value is to find out present value cash flow. Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.