Which of the following is the correct definition for present value (PV)?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
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Which of the following is the correct definition for present value (PV)?

Select one:
a.

The current value of the sum of all the past cash flows given a specified rate of return.

b.

The current value of the sum of all the future profits made by the company with a specified rate of return.

c.

The current value of a future sum of money or stream of cash flows given a specified rate of return.

d.

The future value of the sum of all the future cash flows without a specified rate of return.

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