What does the term 'discounting' refer to in IRR calculation?

آئی آر آر کیلکولیشن میں اصطلاح 'رعایت' کا کیا حوالہ ہے؟

Increasing future cash flows

Ignoring cash flows

Adjusting cash flows for inflation

Reducing future cash flows to present value

In IRR calculation, discounting refers to the process of reducing future cash flows to their present value.

This is done to compare cash flows that occur at different points in time on an equal basis.