Question

What is the term for applying the discount factor to the combination of benefits and costs?

a) Cost-benefit analysis
b) Factorized valuation
c) Discounted estimation
d) Financial modulation

Answer 1

The term for applying the discount factor to the combination of benefits and costs is cost-benefit analysis.

Step-by-step explanation:

The correct term for applying the discount factor to the combination of benefits and costs is a) Cost-benefit analysis. Cost-benefit analysis involves comparing the present costs of an investment or project to the present discounted value of future benefits. This analysis helps determine whether the benefits outweigh the costs and whether the investment is financially viable.