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Topic: Present value

Related Topics

Time value of money

Future value

Net present value

Discount

Adjusted present value

Perpetuity

Stock valuation

Discounted cash flow

NPV

List of finance topics

Cash flow

Interest

Corporate finance

Interest rate

Annuity

	PlanetMath: present value
		By calculating the present values of these options, one may be able to compare the “present” values of these payments and figure out which is the preferable option.
		Net present values are commonly used when one is interested in comparing car loans or home mortgages.
		This is version 5 of present value, born on 2007-02-09, modified 2007-02-11.
	planetmath.org /encyclopedia/PresentValue.html (308 words)

	Present value - Wikipedia, the free encyclopedia
		The present value of a future cash flow is the nominal amount of money to change hands at some future date, discounted to account for the time value of money.
		Because of this present values are smaller than corresponding future values.
		The present value of a bundle of cash flows is the sum of each one's present value.
	en.wikipedia.org /wiki/Present_value (780 words)

	Net present value - Wikipedia, the free encyclopedia
		Net present value (or NPV) is a standard method in finance of capital budgeting – the planning of long-term investments.
		Using the NPV method a potential investment project should be undertaken if the present value of all cash inflows minus the present value of all cash outflows (which equals the net present value) is greater than zero.
		A key input into this process is the interest rate or “discount rate” which is used to discount future cash flows to their present values.
	en.wikipedia.org /wiki/Net_present_value (506 words)

	Time and Uncertainty
		Present value analysis is a mathematical approach which uses a technique called discounting to take values obtained at different periods of time to a single period, called the present value, allowing them to be compared.
		Overall, the present value of her Social Security benefits is the sum of the present value of the benefit earned each year.
		It is equivalent to the discount rate which equates the present value of the cost of the investment to the present value of the revenue stream generated by the investment.
	www.ses.wsu.edu /people/faculty/rosenman/dist-managerial/time_and_present_value.htm (5407 words)

	Time Value Of Money
		Present value refers to today's value of a sum of money to be received in the future.
		In our example, the present value of $100,000 to be received in two years, and to which a discount rate of 10% is applied was $82,644.63.
		Though we didn't show you the calculation for this, the present value of $100,000 to be received in fifty years and to which a 10% discount rate is to be applied is $852.86.
	www.teenvestor.com /investors/bizconcepts/tvm.htm (1616 words)

	Present Value of a Dollar
		The present value is the current value of a dollar today that is expected to be received or paid out at some point in the future.
		This is a particular type of present value calculation that assumes a single dollar amount in the future is brought back to a single dollar amount today.
		Unless stated otherwise, a present value calculation assumes that the future dollar amount that is being discounted occurs at the end of the future time period.
	www.uwf.edu /rconstand/5994content2003/T2-TimeValue/T2-TimeValueP05.htm (468 words)

	Present Value (Site not responding. Last check: 2007-11-02)
		Present Value describes the process of determining what a cash flow to be received in the future is worth in today's dollars.
		Therefore, the Present Value of a future cash flow represents the amount of money today which, if invested at a particular interest rate, will grow to the amount of the future cash flow at that time in the future.
		Notice that the Future Value Equation is used to describe the relationship between the present value and the future value.
	www2.hpu.edu /mlane/BusinessFinanceOnline/TVM/PresentValue.html (253 words)

	Present Value of an Annuity
		The Present Value of an Ordinary Annuity (PVoa) is the value of a stream of expected or promised future payments that have been discounted to a single equivalent value today.
		The Present Value of an Ordinary Annuity could be solved by calculating the present value of each payment in the series using the present value formula and then summing the results.
		The Present Value of an Annuity Due is identical to an ordinary annuity except that each payment occurs at the beginning of a period rather than at the end.
	www.getobjects.com /Components/Finance/TVM/pva.html (562 words)

	Present Value, by David R. Henderson: The Concise Encyclopedia of Economics: Library of Economics and Liberty
		Present value is the value today of an amount of money in the future.
		If the appropriate interest rate is 10 percent, then the present value of $100 spent or earned one year from now is $100/1.10, which is about $91.
		In other words, the present value of an amount far in the future is a small fraction of the amount.
	www.econlib.org /library/Enc/PresentValue.html (418 words)

	PRESENT VALUE TECHNIQUES
		Salvage value is multiplied by the Present Value of $1 figure to give you the present value of the salvage value.
		The present value of the lease is computed by multiplying the total lease payment by the factor for the Present Value of Annuity of $1; i.e., $371 x 68.04 = $25,243.
		The monthly table for the Annuity Whose Present Value is $1 for the period of the useful life (96 months) shows a factor of.8147.
	sam.dgs.ca.gov /TOC/3700/3740.htm (1093 words)

	Present Value of an Annuity (Site not responding. Last check: 2007-11-02)
		At the required rate of 12 percent, we found that the present value of that $35,000 was $27,902.
		In other words, the present value of annuity may be calculated by treating each annuity payment as a lump sum and finding the present value of each PVF instead of the PVAF.
		where PVAD is the present value of annuity due, and PVAF is the present value of annuity factor at rate i for n periods.
	www.arches.uga.edu /~jkau/re9830/pv8.html (483 words)

	Present Value-Based Measurements and Fair Value
		The argument behind the use of present value techniques is that more relevant information is produced due to factoring in the uncertainties and risks associated with the amount and timing of cash flows.
		FASB has identified fair value as the sole objective when present value techniques are applied in measuring assets or liabilities at the time of initial recognition (or for fresh start measurements).
		If present value techniques are to be used in situations beyond initial measurement (e.g., effective interest amortization) and articulation is to be maintained, the measurement must have an effect on either earnings or comprehensive income.
	www.nysscpa.org /cpajournal/1999/1099/Features/F281099.HTM (2944 words)

	Defense Procurement and Acquisition Policy - Contract Pricing Reference Guide
		The difference between the present value of the receipts and the present value of the expenditures is net present value.
		For example: Determine the present value of a series of 36 monthly payments of $1,000 each due at the beginning of each month for the next three years; that is, $12,000 per year for three years.
		Net present value analysis should be used in any analysis supporting Government decisions to initiate, renew, or expand programs or projects which would result in a series of measurable benefits or costs extending for three or more years into the future.
	www.acq.osd.mil /dpap/contractpricing/vol2chap9.htm (4245 words)

	ROI Guide: Net Present Value
		Thus, in the earlier example, the present value of $1.10 a year from now is $1.10 x.909, or $1.00.
		Its present value is higher because the returns occur earlier in the project's life.
		But when the time value of money is considered, the server consolidation project looks slightly better, with an NPV higher by $9,000, because the returns occur earlier in the project's life.
	www.computerworld.com /printthis/2003/0,4814,78530,00.html (791 words)

	Net Present Value (Site not responding. Last check: 2007-11-02)
		Net Present Value criterion is an important assessment which calculates the current value of a future cash flow.
		Therefore the NPV of project XYZ is currently -64,128.20 or to state it another way, the current value of the cash flows generated by this project in the future is -$64,128.20.
		Therefore on a cost/value basis it should not be initiated as the negative Internal rate of return during the period when the project is losing money is greater, cumulatively, then the corresponding positive IRR when the project begins to generate positive cash flow.
	www.macroanalytics.com /html/net_present_value.html (336 words)

	DivorceNet - Present Value Calculation Versus Deferred Distribution of Employee Stock Options
		Ignoring this factor, the value of a stock option under BlackScholes is still not equivalent to the present value of a pension for reason explained below.
		The present value of $20,000 of the annuity is truly what the annuity is worth in the market to the average person.
		When the annuity is granted in the form of a pension to an employee, the present value of the pension represents the purchase price of the pension in the open market (ignoring profit loading and overhead) from a life insurance company.
	www.divorcenet.com /states/nationwide/present_value_calculation_versus_deferred_distribution_of_employee_stock_options (2341 words)

	Economics Interactive Tutorial: Discounting Future Income
		The present value of a future income amount is the amount that, if we had it today, we could invest and have it grow to equal the future income amount.
		Notice, by the way, the present value of $200 in two years ($181.41) is less than the present value of $200 in one year ($190.48).
		A reason for using the term "discount rate" when you calculate a present value is that you are taking a larger number, the future value, and calculating from it a smaller number, the present value.
	hadm.sph.sc.edu /COURSES/ECON/Dis/Dis.html (2236 words)

	Valuation
		It represents the present value of a payment of one unit to be made with certainty at the specified future date.
		As shown earlier, the value of the firm is 49.875, divided between the value of the bonds (49.02) and that of the stocks (0.855).
		The wealth of an individual may be defined as the maximum amount of present consumption that could be obtained if all his or her property were sold (traded for present units of the numeraire).
	www.stanford.edu /~wfsharpe/mia/prc/mia_prc2.htm (5875 words)

	Great Ideas - USING FUTURE VALUE AND PRESENT VALUE TABLES WHEN THE NUMBER OF PERIODS EXCEEDS THOSE IN THE TABLES (Site not responding. Last check: 2007-11-02)
		If we are using a table representing the future value or present value of one, we simply multiply together any number of table values in the appropriate interest rate column whose sum of the periods is equal to the number of periods we wish to calculate.
		We may use the future value of an annuity table for 25 periods, multiply that value by the future value of one table value for 15 periods, then add that result to the future value of an annuity table for 15 periods.
		The second step is to multiply that amount (or table value) by the table factor from the future value of one table to determine the amount that the first 25 deposits would be worth at the end of 40 periods.
	www.swcollege.com /vircomm/gita/gita06-3_main.html (322 words)

	Present Value
		The present value of a sum of money to be received at a future date is determined by discounting the future value at the interest rate that the money could earn over the period.
		If both the future value and present value are known, one can solve for the time or the interest rate using one of the techniques discussed in future value calculations.
		When there is more than a single cash payment at a future date, the present value is calculated by taking the present values of the individual cash payments and summing them.
	www.netmba.com /finance/time-value/present (185 words)

	Calculating the present value of Paladin’s uranium deposits : OTC Speculator
		Below I have evaluated the present value of each asset individually, using the formula: PV= Future value/(1+i)^t, where i is the risk free long term interest rate and t is the time period over which the value will be realized.
		So by using $4.45 billion as the future value, 6 percent as the risk free interest rate, and 21.5 years as the period, we can calculate that the present value of Langer Heinrich is $1.31 billion.
		Given all of these future catalysts, Paladin deserves to trade at a premium to the present value of its uranium deposits, but at the moment, it is actually trading at a discount to the value of these deposits.
	www.otcspeculator.com /2007/03/03/calculating-the-present-value-of-paladins-uranium-deposits (1114 words)

	Reduce damages to present value (Site not responding. Last check: 2007-11-02)
		In this case the failure to place a line for reduction to present value on the verdict form could not possibly be harmful error, since (1) the Defendant presented no evidence on the issue, and (2) the Defendant did not adequately preserve a request for an instruction on the issue.
		If there was reversible error relating to the reduction to present value, the case should be remanded to the trial court for the limited purpose of a jury determination on the issue of the reduction to present value.
		In the present case, all the evidence shows that the Plaintiff was not negligent when she walked to the elevator, pushed the button, and waited for the elevator to arrive.
	www.fla-law.com /reduce.htm (8826 words)

	Present Value, Inflation, and Discounting
		The present value concept captures the time value of money by adjusting through compounding and discounting cash flows to reflect the increased value of money when invested.
		The present value of a cash flow reflects in today’s terms, the value of future cash flows adjusted for the cost of capital.
		In essence, the time value of money reflects the fact that money in hand today is more valuable than an identical amount of money received in the future and that benefits and costs are worth more if they are realized earlier.
	ceh.nasa.gov /webhelpfiles/Present_Value,_Inflation,_and_Discounting.htm (635 words)

	CCH Financial Planning Toolkit \| Present Value and Future Value
		The time value of money concepts of present value and future value, like the concepts of compounding and discounting, are two sides of the same coin.
		Use this Present Value of Future Payments Table to figure the present value of amounts to be paid in the future.
		Use this Annuity Table figure the present value of a series of payments to be made in the future, based on interest at different rates.
	www.finance.cch.com /text/c10s10d080.asp (696 words)

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