present values

Today's worth calculations

Present values is the plural of present value, a financial concept: the current worth of money to be received in the future, discounted to account for time and risk.

A dollar today is worth more than a dollar next year because today's dollar can earn interest.

Present values let investors compare cash flows occurring at different times: We calculated the present values of both payment options to decide which contract was better.

Related

opportunity cost · investments · economics · compounding · interest rate · finance · amortization · cash flow · cost-benefit analysis · maturity · sinking fund · real estate appraisal · hurdle rate · payback period · weighted average · risk premium · pension planning · discounted cash flow

Opposites
adjustment for time value of money

present valuesface values

Numbers printed on currency

book values

Family

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Used worldwide · Timeless · Abstract · Rated G