A business wishes to discount a future value dollar amount to present value. Which type of interest is used for this calculation? Inflationary Compound Paid Simple

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17Q: What is the difference between the discount rate used for net present value and the internal rate of...
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A business wishes to discount a future value dollar amount to present value.

Which type of interest is used for this calculation?

  • Inflationary
  • Compound
  • Paid
  • Simple
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