# present value

## Definitions

### Accounting

### Construction

- The value of a benefit or
__cost__ found by __discounting__ future cash flows to the base time. Also, the system of comparing proposed investments, which involves discounting at a known interest rate (representing a cost of __capital__ or a minimum acceptable rate of return) in order to choose the alternative having the highest present value per unit of investment.

### Economics

- noun the value of something in the future, shown in current terms. If interest is running at 5 per cent per annum, the sum of £100 will be worth £105 in one year’s time; alternatively, £105 next year has a present value of £100.

### Health Economics

http://www.dictionarycentral.com/definition/present-value.html