Question:
The discounting factor is used to determine
The discounting factor is used to determine
Show Hint
Discounting factor:
- Used to calculate present value.
- Important in investment analysis.
- Determines present investment for future returns.
- Used to calculate present value.
- Important in investment analysis.
- Determines present investment for future returns.
Updated On: Sep 1, 2026
- Present returns
- Future returns
- Present investment
- Future investment
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Understanding the Question:
This question tests knowledge of financial analysis in forestry.
Step 2: Detailed Explanation:
The discounting factor is used to determine the present value of future cash flows.
It is used to calculate the present investment required for future returns.
Present returns (A): Not the purpose.
Future returns (B): Not the purpose.
Future investment (D): Not the purpose.
Thus, the correct answer is present investment.
Step 3: Final Answer:
Thus, the discounting factor is used to determine present investment, which corresponds to option (C).
[0.5cm]
This question tests knowledge of financial analysis in forestry.
Step 2: Detailed Explanation:
The discounting factor is used to determine the present value of future cash flows.
It is used to calculate the present investment required for future returns.
Present returns (A): Not the purpose.
Future returns (B): Not the purpose.
Future investment (D): Not the purpose.
Thus, the correct answer is present investment.
Step 3: Final Answer:
Thus, the discounting factor is used to determine present investment, which corresponds to option (C).
[0.5cm]
Was this answer helpful?
0
0
Top ICAR AIEEA Forestry Agroforestry Silviculture Questions
- Read the following statements of silvicultural system followed in tree species and choose the correct answer from the following options:
Statement (I): Anogeissus latifolia is worked only as a component species of mixed forests as coppice-with-standards.
Statement (II): Terminalia arjuna tree is not a regular component of forest stand and is usually worked under selection and coppice with standards.
Choose the correct answer from the options given below: - The most important single factor affecting natural regeneration of Shorea robusta is the time lag between the falling of seed and the commencement of the ________.
- Read the following statements and choose the correct answer about silvicultural system/s adopted for the management of Shorea robusta:
Statement (I): Under clear felling system, a rotation age is fixed and the entire area clear felled and the crop is of uniform age.
Statement (II): Selection system is adopted for areas which are badly eroded and where regeneration is problem and regeneration is obtained by natural means, which may be supplemented by planting.
Statement (III): In coppice with standards system, a few standards are retained and the other trees above the exploitable diameter are clear felled and regeneration is obtained by means of coppice.
Choose the correct answer from the options given below: - Which of the following type of soil is the best for plant growth?
- A biosphere reserve conserves and preserves the following variety of life and choose the correct option of variety of life:
(A). Wild animals
(B). Wild land
(C). Natural vegetation
Choose the correct answer from the options given below:
View More Questions
Top ICAR AIEEA Forest Economics Questions
- Identify the odd answer from the following choice on the basis of kinds of sampling and systems of allocating/distributing/choosing sampling units:
- Which of the following valuation method/approach is being used to value wild life and recreational benefits of protected areas.
- Additional quantity of output, added by an additional unit of input is known as _________.
- Magement of a conservation reserve is done as per provisions of the __________of the Wildlife (Protection) Amendment Act, 2002.
- Stumpage refers to the following one of the statements
View More Questions
Top ICAR AIEEA Questions
- Which of the following statements is false?
- Which of the following is an example of an inventory?
- According to Adam Smith, productivity gains could be brought about through .
- The supply curve for an artificially scarce good is .
- Which of the following would not be considered an opportunity cost of paid employment?
View More Questions