Calculating the present value of a future cash flow to determine its value today is called:

A) Discounted cash flow valuation.
B) The discount rate.
C) Future value compounding.
D) Present value compounding.
E) Timing the cash flow.

Discounted Cash Flow

A technique for determining the value of an investment by considering the future cash flows it is projected to generate, factoring in the time value of money.

Present Value

Today's worth of a single sum or series of future cash flows, discounted at a particular rate of return.

Future Cash Flow

The amount of money that is expected to be received or paid out by an entity in the future, often considered for investment or project valuations.