present value

noun

1. the current capital value of a future income or outlay or of a series of such incomes or outlays. It is computed by the process of discounting at a predetermined rate of interest

Example Sentences

As the historian William N. Goetzmann has written, the related idea of net present value "is the most important tool in modern finance."

From Science Daily

In response to a question about how the two companies came up with a value for Step Up’s profit interests, Lipka said it was based on “an aggregate present value” and referred further questions to his attorneys.

From Los Angeles Times

According to the researchers, the present value of ecosystem services must therefore be set much higher in today's cost-benefit analyses, to more than 130 percent if just including the rise of income.

From Science Daily

The trend hasn’t gone unnoticed by some agents around the industry, especially for deals such as Ohtani’s in which the “net present value” of a contract — essentially, how much a deal with deferrals would be worth if it were paid out in the present day, since money in the future isn’t as valuable because of inflation — is significantly lower than the actual guaranteed total.

From Los Angeles Times

“We offer them perspective. We offer them history. We offer them any information to help them make the best decision they can themselves. So if a player decides to do what Shohei did, they can make that determination. If another player comes in and he wants and finds a team that’s willing to have their contract all in present value, that’s fine as well.”

From Los Angeles Times