InvestorWords.com
discounted future benefits
Definition
Methods (such as discounted cash flow) used in computing the net present value of the income, cash flows, or societal benefits expected from an investment or environment improvement project. These methods are the reverse of the concept of compound interest, and are based on the concept of the time value of money. They try to determine what is today's worth of a dollar that is assumed to be earned or saved on a certain date in the future.
Recommended Articles from InvestorGuide.com
- The Importance of Estate Planning and Determining Your Net Worth
- Does Dollar-Cost Averaging Work With ETFs?
- Securing Financing for the Purchase of your Car
- Which High Return Investment Is Right For Your Retirement Savings?
- Common Mistakes That People Make While Picking a Financial Advisor
- Introduction to the Economy, Fiscal and Monetary Policy
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!



