present value

Definitions

Accounting

• noun the value now of a specified sum of money to be received in the future, if invested at current interest rates.
• noun a price which a share must reach in the future to be the equivalent of today’s price, taking inflation into account

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

• (written as Present Value)
  The value at a particular point in time of a future flow of income, health, etc.

Nearby Definitions of “present value”

• power
• practice
• preference
• premium
• present
• present value
• press
• price
• price discrimination
• price mechanism
• prick

Contexts for “present value”

5 definitions in context
• Accounting
• Construction
• Economics
• Health Economics