Final answer:
Present discounted value is the value of future cash taking into consideration the time value of money by discounting at a given rate of interest.
Step-by-step explanation:
The value of future cash taking into consideration the time value of money by discounting at a given rate of interest is known as present discounted value. It is used to determine the present worth of future cash flows by considering the interest rate to calculate the amount that needs to be paid in the present to equal a certain amount in the future. For example, if the interest rate is 25%, a payment of $125 a year from now would have a present discounted value of $100.