present value (PV)

Related Terms
Estimated current value of a future amount to be received or paid out, discounted (see discounting) at an appropriate rate, usually at the cost of capital rate (the current market interest rate). PV provides a common basis for comparing investment alternatives. Also called present worth. See also net present value, discounted cash flow, and future value.

Use 'present value (PV)' in a Sentence

If you know that the present value of an asset is more than the future value then it is time to get rid of it.
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Before they started discussing sale prices, the management team wanted to verify that they had an accurate present value for every product in their inventory.
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The present value calculation plainly indicated the profitability of the investment for us so we had to invest in our futures by accepting it.
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