present value
Definition
The current value of one or more future cash payments, discounted at some appropriate interest rate.
Use present value in a sentence
“ You should always try and know the present value of your company and be prepared to sell if you get a great deal. ”
“ The present value calculation allowed for all of the data to be meaningful because it all was comparable on the same scale. ”
“ After my company invested in some municipal bonds that were available at a low price, my boss asked me to figure out how much the future interest payments would be worth at present value. ”
