ployer considering the financial impact of future compensation possibilities when Multiple Choico Future value perspective Past value perspective Total value perspective Present value perspective Compensation value perspective

Present value perspective.<br /><br />When considering the financial impact of *future* compensation possibilities, an employer uses a **present value perspective**. This approach discounts future amounts back to their equivalent value today, allowing for a comparison of different compensation packages with varying timelines and amounts. It takes into account the time value of money, recognizing that a dollar received today is worth more than a dollar received in the future.<br />