Present value - The current value of a future cash flow discounted at an appropriate interest rate. See Discount factor.
The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor. For example, if the opportunity cost of funds is 10%, the present value of $100 to be received in one year is $100x(1/1 + .10)=$91.
Present value : the current value of a future cash flow discounted at an appropriate interest rate. see discount factor.
the amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. to determine the present value, each future cash flow is multiplied by a present value factor. for example, if the opportunity cost of funds is 10%, the present value of $100 to be received in one year is $100x(1/1 + .10)=$91.
Present value