Answer:
c. discounting.
Explanation:
The process of calculating the current or present value of money that will be received in future is called discounting. Discounting is a method used for calculation of Present value of any cash flow. Time value of money concept is the a main principle on which discounting process is based. Terry is calculating the value of a bonus that he will receive next year. Actually terry has to discount its cash flow from bonus using an appropriate discount rate.
