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.
Use 'present value (PV)' in a Sentence
If you know that the present value of an asset is more than the future value then it is time to get rid of it.
Before they started discussing sale prices, the management team wanted to verify that they had an accurate present value for every product in their inventory.
The present value calculation plainly indicated the profitability of the investment for us so we had to invest in our futures by accepting it.
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