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present value (PV)
by 趙永祥 2015-04-02 16:50:47, Reply(0), Views(387)




 
Term of the Day

Date: Wednesday, April 1, 2015

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
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Usage Example
$1.00 received (or spent) one year from now is equivalent to a present valueof roughly $0.9091.