What is The process of calculating the present value of a future cash flow called?

The process of calculating the present value of a future cash flow is called discounting. This involves applying a discount rate to future cash flows to account for the time value of money, which reflects the principle that a dollar today is worth more than a dollar in the future. The present value is determined by dividing the future cash flow by (1 + the discount rate) raised to the power of the number of periods until the cash flow occurs. This calculation helps in assessing the worth of future cash flows in today's terms.