Definitions for

**"present value"****Related Terms:**Future value, Discounting, Time value of money, Net present value, Npv, Discount factor, Discounted cash flow analysis, Discounted cash flow, Internal rate of return, Adjusted present value, Terminal value, Present value of an annuity, Irr, Acv, Current value, Dcf, Valuation reserve, Accrued depreciation, Embedded value, Residual value, Appreciation rate, Salvage value, Depreciate, Net realizable value, Full cash value, Write-down, Net cash flow, Modified internal rate of return, Income approach, Current cost accounting, Amount realized, Current dollars, Haircut, Capitalization, Capitalization rate, Depreciation, Income capitalization approach, Actual cash value, Profitability index, Direct capitalization, Worth, Rate base, Ddm, Cap rate, Appraisal value, Financial management rate of return, Market value adjustment, Valuation date, Valuation

The current value of one or more future cash payments, discounted at some appropriate interest rate.

The principal which, drawing interest at a given rate, will amount to the given sum at the date on which this is to be paid; thus, interest being at 6%, the present value of $106 due one year hence is $100.

The value of a future cash stream discounted at the appropriate market interest rate.

The pretax present value of estimated future revenues to be generated from the production of proved reserves calculated in accordance with SEC guidelines, net of estimated production and future development costs, using prices and costs as of the date of estimation without future escalation, without giving effect to non-property related expenses such as general and administrative expenses, debt service and depreciation, depletion and amortization, and discounted using an annual discount rate of 10%.

The value of a future cost or benefit after adjusting for time preferences by discounting.

the sum of money which, if invested at a certain rate of compound interest, will accumulate to a certain value by a specified date. In the case of a charitable remainder trust or a gift of residual interest, the amount for which a donation receipt may be issued.

When used with respect to oil and gas reserves, present value is the estimated future gross revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices and costs in effect at the determination date, without giving effect to non-property related expenses such as general and administrative expenses, debt service and future income tax expense or to depreciation, depletion and amortization, discounted using an annual discount rate of 10%.

The present value of a structured settlement's payments is the amount of money today that will equal the structured settlement terms and conditions after considering interest rates, mortality, tax and management fee payments, protection from dissipation, inflation risk, interest rate risk, default risk, and the inflexibility of an absolutely unchangeable investment. To the top

Literally the value today of a future value. More generally as used in financial mathematics, it is the value at an earlier point in time of a single future cash amount or of several future cash amounts.

The amount that a dollar figure payable in the future is worth at the present time.

The amount of money that sale of an asset would bring if it were sold at the time of the interview.

The current value of a future cash flow discounted at an appropriate interest rate. See Discount factor.

An economic term used to determine the value of dollar savings that will be realized in the future.

The cash sum you would need to put on deposit at a compound rate of interest to grow to a given figure at a future given date. See Future Value and Current Value.

Present Value is the current value of an account, security, investment, lump sum of money, or a future series of payments.

Value today of a sum to be paid or collected in the future to buy a good or service.

The calculation in current dollars of a regular stream of payment s or income over a given period by adjusting for some value of annual interest or inflation. [D03155] RMW The relative worth of a benefit received or cost expended at a specified time in the future when the applicable discount rate is considered. [D03545] GAT The value now of a future payment, after discounting it by a suitable discount rate to recognize that it is worth less than a payment of the same amount made now. [D05041] RAMP

The value today of payments to be made or received in the future.

The valuation of future cash flows in today's monetary terms. Because of the opportunity cost of money – in the form of interest - the present value of money is always less than the future amounts. Money invested today can yield an increased monetary amount.

The value today of a future sum of money or cash flow, given a specified rate of interest.

An amount which, if invested at a certain rate of interest, will accumulate to a specified sum at a future date.

The current worth of a cash flow. Future value becomes present value through the process of discounting.

The current value of money units that will be received in the future. The result arrived at in a discounted cash flow calculation by multiplying a projected annual cash flow figure by a discount factor derived from a hurdle rate of interest and a time period.

Current value of a given future cash flow stream, discounted at a given rate.

Future amounts that have been discounted to the present. To Top

The present value of the deposit is the value of the deposit calculated as though that amount of money were invested in something that would yield the specified rate of return (annual interest rate) for the life of the mine. The program requires that the present value be greater than the total capital costs for a simulated deposit to be considered economic.

The value today of a stream of payments and/or receipts over time in the future and/or the past, converted to the present using an interest rate. If Xt is the amount in period and the interest rate, then present value at time =0 is = ( Xt).

A security's value, discounted at interest in terms of the future. Interest is taken at a level to reflect current and prospective rates.

The estimated current value of a future receipt or payment, as calculated by the assumed interest rate between the current date and the date the future transaction will occur.

The value, in today's dollars, of assets to be received at some future time

the current value of a stream of future costs and/or benefits, calculated through the use of a discount rate.

a computed value concept, whereas a lump sum is an actual single cash payment which is not a pension as an annuity

The value today of a payment, or stream of payments, now and in the future (or in the past).

Money, expressed in today's dollars.

The equivalent value of an amount in today's dollars, given its value at a specific time in the future. Also known as net present value.

The current value of a future cash flow or series of cash flows discounted at an appropriate interest rate or rates. For example at a 12% interest rate, the receipt of one dollar a year from now has a present value of $0.89286.

The future value which is discounted back by the inflation rate.

The value at the present time of a future sum of money. It is equal to the amount that, if invested today, would grow as large as the future sum, taking into account the interest rate that it will earn.

The current value of an investment or series of future cash flows when discounted with an appropriate discount rate to reflect the cost of money and a premium over that cost to compensate for the risks associated with deriving the cash flow.

Value of future cash flows if available today. What a buyer is willing to pay or a seller is willing to receive now for a company in exchange for future cash flows.

The value today of a future payment discounted at an appropriate rate of interest.

Present value indicates today's value of a sum to be received in the future. This is the summation of a future stream of payments discounted at a given interest rate or required rate of return.

The amount of a sum of money that, if invested in the present, at the current interest rate, would accumulate to the future sum over a given number of years.

The amount to which a future deposit will discount back to present when it is depreciated in an account paying compound interest.

The current value of a future series of cash flows given a discount factor or interest value. Used to evaluate the alternative investments.

how much a future dollar amount is worth today; the current value of future inflows or outflows.

The equivalent current value for money which is expected to be received (or dispersed) in the future, either by means of a single payment (or payout) or a stream of payments (or payouts) over time. To calculate the present value, the future sum is lessened by some factor (called the " discount rate") which represents the time value of money. For a stream of cash flows, the net present value is the sum of the present value of each inflow or outflow.

The discounted value of a stream of costs; it represents the amount of money that would be required to cover the payment stream at a given discount rate, and can be used to compare economic costs incurred in different time periods.

The estimated value now of an amount that will be received in some future period.

A current single value for a benefit or a series of benefit payments to be made in the future under the terms of your plan.

Today's value of a sum of money that will be received at a future date.

The present value of proved reserves is an estimate of the discounted future net cash flows from properties owned at a given time period, usually at year-end. Net cash flow is defined as net revenues, after deducting production and ad valorem taxes, less future capital costs and operating expenses, but before deducting federal income taxes. Future net cash flows are discounted at an annual rate of 10% to determine their "present value." The present value indicates the effect of time on the value of the revenue stream and should not be construed as the fair market value of the properties. In accordance with Securities and Exchange Commission (SEC) regulations, estimates are made using constant oil and gas prices and operating costs at year-end, or as otherwise indicated. Production: Oil or gas removed from the ground- Gross production: Production before deducting royalties.- Net production: Gross production, less royalties, multiplied by the fractional working interest.

A calculation that adjusts an amount to be received in the future to a current value taking into consideration assumptions about the donor's life expectancy, the rate of return the investments are expected to generate and a rate by which the future amount should be discounted (the discount rate).

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.

T he value now of a sum of money to be paid or received in the future. (See: Discount Rate).

The value today of a future payment, or stream of payments, discounted at some appropriate compound interest rate ( Discount Rate).

The estimated present worth of an amount of cash to be received or paid in the future.

The value in today's dollars of a future cash flow discounted at a required rate of return.

The current value of a payment or series of future payments found by discounting the expected payments by a desired rate of return in order to compensate for the time value of money. See also internal rate of return and net present value.

a concept that compares the value of money available in the future with the value of money in hand today. For example, $78.35 invested today in a 5% savings account will grow to $100 in five years. Thus the present value of $100 received in five years is $78.35. The concept of present value is used to analyze investment opportunities that have a future payoff.

The current dollar value of a future sum. In other words, the amount that would have to be invested today at a given interest rate over a specified period in order to equal the future sum.

The present value of money; the equivalent amount in today's dollars of a single payment or a series of payments made in the future, taking into account the time value of money.

The present worth of a future sum of money. "A dollar today is worth more than a dollar tomorrow..." (because you can invest it today!).

The worth of future receipts or costs expressed in current value. To obtain present value, an interest rate is used to discount future receipts or costs.

Today's value of future cash flows, discounted at an appropriate rate.

Refers to today's value of money to be received in the future. (For example, how much is the right to receive $10,000 in five years worth to you today?)

Present value factor Present Value Index (PVI)

The value today of a future payment. For investment purposes, a calculation can be made on how much should be invested today in order to obtain a given sum of money later.

The value today of a future payment that is discounted at a stated rate of compound interest. For example, the present value of $100 that will be paid to the Postal Service 10 years from now is about $38.55, if we discount that $100 at a rate equal to 10% interest compounded annually.

The value, as of a specified date, of future economic benefits and/or proceeds from sale, calculated using an appropriate discount rate.

The value of a future payment, receipt, or cash flow expressed in today's dollars. The present value of an amount is always less than the amount to be received in the future.

The sum of all future benefits or costs accruing to the owner of an asset when such benefits or costs are discounted to the present by an appropriate discount rate.

Refers to a method that applies an assumed rate of interest to compute today's value for a future payment.

The value of a future payment or series of future payments discounted to the current date or to time period zero.

The current value of cash received at a definite point or points in the future.

The value today of future payments made either in a lump sum or in a series. The present value of these future payments is usually less than the actual cash outlay because money has a time value called interest.

The amount invested at a certain interest rate

The current worth of a payment or a series of payments, discounted at a given interest rate. Net Present Value or NPV is used when calculating option, bond and swap prices.

The current equivalent value of payments or a stream of payments to be received at various times in the future. The present value will vary with the discount interest factor applied to future payments.

The amount of money that must be invested today in order to accumulate a specified amount of money by a certain date. Contrast with future value (FV).

The value today of a sum to be received at a future date. Today's value is determined by the interest rate and the elapsed time until the sum is to be received. In other words, one dollar received a year from now is worth more than a dollar received five years from now. For example, using 6% (the value for the use of money), one dollar received one year from now is worth 94 cents today, but the value of a dollar received five years from now is only worth about 75 cents today. And if received twenty years from now, that dollar's present value is about 31 cents. The higher the interest rate, the lower the present value for any given future receipt.

Present value is the cash equivalent now of a sum of money receivable or payable at stated future date, discounted at a specified rate of return. (See also net present value)

The current value of an amount of money to be received at a future date.

Representation of the current value of a future payment or serial payments at scheduled compounding periods with a specific discounting rate of return. Financial advisors may use the phrase "time value of money" while accountants might prefer "discounted cash flows."

The value of future cash flows discounted to the present at certain interest rate (such as the entity's cost of capital or funds), assuming compounded interest. The GAO definition of present values is as follows: The worth of a future stream of returns or costs in terms of money paid immediately (or at some designated date). A dollar available at some date in the future is worth less than a dollar available today because the latter could be invested and earn interest in the interim. In calculating the net present value, prevailing interest rates provide the basis for converting future amounts into their "money now" equivalents. Under credit reform, the subsidy cost of direct loans and loan guarantees are to be computed on a present value basis and included as budget outlays at the time the direct or guaranteed loans are disbursed.

The value of a stream of cashflows adjusted for risk and for the time value of money.... more on Present value

The result of discounting an amount to be received or paid in the future, or the amount that must be invested now at a specific interest rate to accumulate one or more future payments. (See Discounted Cash Flow)

This is how much future payments or income are worth now. It is worked out by taking off an amount for interest, and taking into account how likely it is that the money will be paid. It is sometimes called capitalised value .

A single number that expresses a flow of current and future income (or payments) in terms of an equivalent lump sum received (or paid) today. The calculation of present value depends on the rate of interest. For example, given an interest rate of 5 percent, today's 95 cents will grow to $1 next year. Hence, the present value of $1 payable a year from today is only 95 cents.

Current value of future amounts or the value today of a future payment, or stream of payments, discounted at the appropriate discount rate.

the value today of a stream of future cash flows, based on an assumed rate of interest

General] the value at a point in time of cash flows at other points in time, calculated at selected interest rates [identical to ASOP No. 20]; see also ACTUARIAL PRESENT VALUE, TIME VALUE OF MONEY

The future net cash inflows expected from an asset or a planned project, discounted to reflect the present value of the asset or project. Français: Valeur actuelle Español: Valor actual

Discounted value of future cash flows.

The value of a future cash stream discounted at an appropriate discount rate

The amount of money required to secure a specified cash flow on a future date at a given rate of return.

The value today of money received in the future at a specified discount rate (Winston, 1995).

The current worth of an amount to be received in the future. In the case of an annuity, present value is the current worth of a series of equal payments to be made in the future.

The current value of an investment which matures in the future, after discounting the maturity at an assumed rate of interest and adjusting for the probability of its payment or receipt.

The current economic equivalent of a future dollar amount. It is derived by discounting the future amount at a rate that reflects the time value of money.

The present value of a future amount adjusted to account for inflation.

The value now of a sum to be received at some future date, discounted at some appropriate compound interest (or discount) rate.

The amount of money that, if invested today, will grow to be as large as a given future amount when the interest that it will earn is taken into account.

The expected discounted value of a series of future payments, allowing for interest and (if applicable) mortality.

The immediate value of an amount or series of amounts that are not due until a future date. Generally, the present value of a future sum is the amount that would accumulate to equal that sum at a specified rate of interest (compounded) for a specified term of years.

The amount of money required to secure a specified cash flow at a future date at a specified return.

The amount of money that future amounts receivable are currently worth. For example, a Life Insurance policy may provide for payments to be made monthly for 10 years. The present value of that money would be less than the total amount of the monthly payments for 10 years because of the amount of interest that a present lump sum could earn during the term that the payments otherwise would have been made.

The amount of money that must be invested on a certain day, sometimes called the valuation date, in order to accumulate to a specified amount at a later date.

The amount of cash in today's dollars equivalent in value to future payments, then discounted at an appropriate compounded interest rate.

Payments (incoming and outgoing payments) becoming due in the future are disclosed at their discounted present value. This allows a comparison of future payments with different maturities, amounts, or schedules. For lease contracts, the present value method has special significance under IAS/IFRS and US-GAAP regulations (present value test).

The worth of all future benefits of an investment in terms of today's dollars

The value now of some money amount or cash flow to be paid or received in the future, adjusted for differences in the value of money over time arising from the opportunity cost of capital. The present value of a future sum is calculated by discounting the future sum.

The present value of a future cash flow is the nominal amount of money to change hands at some future date, discounted to account for the time value of money. A given amount of money is always more valuable sooner than later since this enables one to take advantage of investment opportunities. Because of this present values are smaller than corresponding future values.

The selling price at the time of sale i.e. now.