Difference between revisions of "Discounting"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Discounting]]. The process of finding the present value of a single payment or series of payments. | :[[Discounting]]. The process of finding the present value of a single payment or series of payments. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Discounting]]. The process of finding the present value of a cash flow or a series of cash flows; discounting is the reverse of [[compounding]]. | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 22:07, 1 November 2019
Discounting is the process of finding the present value of a single payment or series of payments.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Discounting. The process of finding the present value of a single payment or series of payments.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Discounting. The process of finding the present value of a cash flow or a series of cash flows; discounting is the reverse of compounding.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
