The Board of Directors of Peterson Enterprises Wishes to Fire

Multiple Choice

The Board of Directors of Peterson Enterprises wishes to fire the Chief Financial Officer (CFO) . As part of the settlement, the company will give the CFO a check equivalent to three years worth of salary. In calculating what the future salary will be worth today, the Directors are

A) Compounding the stream of salary payments
B) Amortizing the value of the salary over five years
C) Determining the value of an annuity
D) Discounting the stream of salary payments
E) Calculating the future value of the stream of payments