Meaning PRESENT VALUE: 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 $100 x [1/(1 + 0.10)] = $91
More terms such as Present value in Dictionary P.
- Definition Put Bond:
- Examples A bond that the holder may choose either to exchange for par value at some date or to extend for a given number of years. If the price is above par, the put is a premium put present value definition.
- Definition Provision For Income Taxes:
- Examples An amount on the P & I statement that estimates a company's total income tax liability for the year present value explain.
- Definition Pattern:
- Examples A technical chart formation used to make market predictions by following the price movements of securities present value what is.
- Definition Par Bond:
- Examples A bond trading at its face value present value meaning.
- Definition Parallel Loan:
- Examples two companies in different countries borrow each other's currency for a specific period of time, and repay the other's currency at an agreed maturity for the purpose of reducing foreign present value abbreviation.
