Present value
Present value
Glossary of business
Definition of present value
The present value is used in investment appraisal to try to establish the value of future returns of income. Future incomes will be less valuable now and so they are discounted (using a discount rate) to give their current or present value. The present value is therefore the value today of future incomes from an investment.
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Terminology about business
Job world
Definition and meaning of present value
Meaning of present value
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