Calculating the present value of a future cash flow to determine its worth today is commonly called discounted cash flow valuation.
This the process of determining the present value of a stream of cash flows by discounting the cash flows using the discount rate. The discounted cash flow is to determine the profitability of an investment.
The discount rule when using discounted cash flow is to accept a project if the present value of the discounted cash flows is greater than the cost of the project. If this is not the case, the project should be rejected.
To learn more about present value, please check: https://brainly.com/question/25748668
