present value
Current monetary equivalent
Present value is what a future sum of money is worth today, accounting for the time value of money—the principle that a dollar now is worth more than a dollar later because it can be invested.
Financial analysts discount future cash flows to present value to compare investments: The present value of those payments is about $50,000.
The calculation depends on the discount rate applied.
Periodic fixed payment
- perpetuityInfinite continuation of time
- lump sumEntire amount at once
- streamSteady continuous flow
- inflowsStreams entering something
outflows · dividends · lease payments · installments · principal · interest payments
Interest on Fed loans
- discounted cash flowTime-adjusted revenue valuation
- compound interestReturns on reinvested earnings
- discountingReducing prices offered
- actuarialOf risk calculation
amortization · compounding · perpetuity · interpolation · summation · formula · spreadsheet · calculator
Interest on Fed loans
- opportunity costSacrificed alternative's worth
- interest rateCost of borrowing money
- inflationSustained price level increase
- risk premiumExtra yield for uncertainty
hurdle rate · cost of capital · yield curve · weighted average · beta · market rate
Assessing company share worth
- discounted cash flowTime-adjusted revenue valuation
- appraisalEstimation of worth
- pricing modelMethod for determining costs
- going concernProfitable, continuing enterprise
Duration until costs recovered
- capital allocationDistributing funds among investments
- return on investmentProfit relative to cost
- capital expenditureSpending on fixed assets
- cost-benefit analysisSystematic comparison of advantages, disadvantages
annuity
Periodic fixed payment
- perpetuityInfinite continuation of time
- lump sumEntire amount at once
- streamSteady continuous flow
inflows · outflows · dividends · lease payments · installments · principal · interest payments
discount rate
Interest on Fed loans
- discounted cash flowTime-adjusted revenue valuation
- compound interestReturns on reinvested earnings
- discountingReducing prices offered
actuarial · amortization · compounding · perpetuity · interpolation · summation · formula · spreadsheet · calculator · tables
discount rate
Interest on Fed loans
- opportunity costSacrificed alternative's worth
- interest rateCost of borrowing money
- inflationSustained price level increase
risk premium · hurdle rate · cost of capital · yield curve · weighted average · beta · market rate
stock valuation
Assessing company share worth
- discounted cash flowTime-adjusted revenue valuation
- appraisalEstimation of worth
- pricing modelMethod for determining costs
payback period
Duration until costs recovered
- capital allocationDistributing funds among investments
- return on investmentProfit relative to cost
- capital expenditureSpending on fixed assets
- actuarial termsmortality rate, life expectancy, survival rate, death rate, radix
- ratestax rate, interest rate, exchange rate, mortgage rate, loan rate
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- business mathmarkup, markdown, discount, profit, margin
- valuationsvaluation, property valuation, business valuation, real estate valuation, estimate
- Asset Valuationvaluation, straight-line, amortization, useful life, replacement cost
present valuefuture value
Amount after growth
nominal value · face value · par value · book value · cash value
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