One of the mysteries of the English language finally explained.
The value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
- ‘It uses a discount rate of 7.5 per cent to calculate the present value of future earnings from its policies.’
- ‘The fundamental value of a stock is of course in theory the present value of all future cash flows received by the owner of the stock.’
- ‘Then one can do a simple calculation to put some realism into these mind-boggling figures of the future by calculating their present values.’
- ‘Oil stocks are normally valued on the basis of the net present value of future cashflows.’
- ‘We look at the net present value of expected future cash flows.’
- ‘But at the end of the day, it is the net present value of the future cash - whether this is generated from everyday trading or sales of trading assets (surplus or otherwise) - that should determine valuation.’
present value/prəˈzent ˈvalyo͞o/
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