PRESENT VALUE

By SovConn | July 27, 2014

present value. The sum of money that, with compound interest, would amount to a specified sum at a specified future date; future value discounted to its value today. — Also termed present worth.

adjusted present value. An asset’s value determined by adding together its present value and the value added by capital-structure effects. — Abbr. APV.

net present value. The present value of net cash flow from a project, discounted by the cost of capital. • This value is used to evaluate the project’s investment potential. — Abbr. NPV.

[Blacks Law 8th]

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