# present value

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## present value

n
(Banking & Finance) 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
Translations
References in periodicals archive ?
To reexamine Fuller's point, we calculate the Present Values (not the Net Present Values), under the assumption that the two projects are competing ways of using the same set of resources.
As previously mentioned, the note's present values on August 15, 2013, and November 27, 2013, are known to be \$104,462.
The problem is what discount rate should be used in computing the present values of the cash inflows and cash outflows?
In year 4 the intrinsic values for the 14 paths not previously truncated are probability-weighted and discounted to determine their present values (that is, the probability is multiplied by the option's intrinsic value and discounted by the risk-free interest rate to determine the path's present value).
These results are based on 1,000 projections of the sample insured's lifetime using a Monte Carlo method and the same mortality rates used to calculate the life expectancy for deterministic pricing and the present values of premiums and benefits for probabilistic pricing.
The present value of the phase 2 assets is \$256,000 (sum of the present values of the investment of phase 2).
The present values of future cash flows from each company's acquisitions have simply not supported the book values of the acquisition's goodwill.
The yield of a section 467 loan is the discount rate at which the sum of the present values of all amounts payable by the lessee as fixed rent and interest on fixed rent, plus the sum of the present values of all amounts payable by the lessor as interest on prepaid fixed rent, equals the sum of the present values of the fixed rent that accrues under the rental agreement.
If the person's retirement tax rate were to increase from 15% to 28%, the present values are \$172,477 for not converting and \$214,991 for converting, an advantage of \$42,514 for switching to a Roth IRA.
Finally, column (6) shows that the sum of the year 1 present values of each year's deductions totals \$1,000.
The present values can then be added up to determine the net present value (NPV).

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