In financial analysis, what term describes the process of calculating the present-day value (or present value) of an amount of money that is expected to be received at some point in the future?

💡 Explanation:

Discounting is the process of determining the present value of a payment or a series of payments that are to be received in the future. It is a fundamental concept in finance, as a dollar today is worth more than a dollar tomorrow due to opportunity costs and inflation.