Financial Terms | |
Discounting |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: investment, credit, inventory control, tax advisor, financial advisor, money, finance, business, |
Definition of DiscountingDiscountingCalculating the present value of a future amount. The process is opposite to compounding. DiscountingCalculating the present value of a future payment. DiscountingThe process of calculating the present value of a stream of future DiscountingThe process of finding the present value of a series of future cash flows. discounting is the reverse of compounding. discountingthe process of reducing future cash flows to present value amounts
Related Terms:Continuous DiscountingThe process of calculating the present value of a stream of future Discounting of Accounts ReceivableShort-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable. Discounted Cash FlowTechniques for establishing the relative worth of a future investment by discounting (at a required rate of return) the expected net cash flows from the project. discounted cash flow (DCF)Refers to a capital investment analysis technique FactoringThe discounting, or sale at a discount, of receivables on a nonrecourse, notification present value (PV)This amount is calculated by discounting the future Present Value (PV)The dollar value at the present time (year zero) of a single cash risk-adjusted discount rate methoda formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk Settlement rateThe rate suggested in Financial Accounting Standard Board (FASB) 87 for discounting the Spot rateThe current interest rate appropriate for discounting a cash flow of
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |