Present value
Revision as of 20:30, 28 October 2019 by Gary (talk | contribs) (Created page with "Present value (also known by its acronym, PV; hereinafter, ''PV'') is the value today of a future payment, or stream of payments, discounted at the appropriate rate of...")
Present value (also known by its acronym, PV; hereinafter, PV) is the value today of a future payment, or stream of payments, discounted at the appropriate rate of interest. PV is also the beginning amount that will grow to some future value.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Present value (PV). The value today of a future payment, or stream of payments, discounted at the appropriate rate of interest. PV is also the beginning amount that will grow to some future value.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
