Present value theory is primarily concerned with which of the following?

Present value theory focuses on determining the current worth of a sum of money that is to be received or paid in the future, taking into consideration the time value of money. This concept is rooted in the idea that a sum of money today has a different purchasing power than the same sum in the future due to factors like interest rates and inflation. By applying present value calculations, individuals and businesses can assess how much future cash flows are worth in today's terms, allowing for informed investment and financial decisions.

In this context, forecasting future earnings, calculating investment risks, and assessing property values, while important concepts in finance and business, do not directly relate to the specific purpose of present value theory, which is to evaluate the current value of future cash flows. Thus, the understanding of present value is crucial for making sound financial choices.