Answer
a.
A tool that utilizes a discount rate to link future values of cash to the current amounts of cash (Master Glossary).
b.
A technique for computing the present value that utilizes conditional cash flows such as cash flows that are promised or contractual cash flows and a discount rate that is adjusted for risk (Master Glossary).
Work Step by Step
a.
A tool that utilizes a discount rate to link future values of cash to the current amounts of cash (Master Glossary).
b.
A technique for computing the present value that utilizes conditional cash flows such as cash flows that are promised or contractual cash flows and a discount rate that is adjusted for risk (Master Glossary).
