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. 

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