What is present value (PV)?

Estimated current value of a future amount to be received or paid out, discounted (see discounting) ...

	Wednesday, April 1, 2015 present value (PV)   Term of the Day present value (PV) Estimated current value of a future amount to be received or paid out, discounted (see discounting) at an appropriate rate, usually at the cost of capital rate (the current market interest rate). PV provides a common basis for comparing investment alternatives. Also called present worth. See also net present value, discounted cash flow, and future value. Learn more about this term Usage Example $1.00 received (or spent) one year from now is equivalent to a present value of roughly $0.9091.   Featured Article How to Start a Business - On Your Mark, Get Ready, Go! On your mark, get ready, go! In the simplest of terms, that is how you start a business and then run like crazy to not only cross the finish line, but win the ... Read this article   Voice Your Opinion What would you do if you won the lottery?   Take us with you! Download the BusinessDictionary app today.
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