Present Value
Definition: The current worth of a future sum of money or stream of cash flows given a specified rate of return. PV = FV ÷ (1 + r)^n. Fundamental to lease acco…
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The current worth of a future sum of money or stream of cash flows given a specified rate of return. PV = FV ÷ (1 + r)^n. Fundamental to lease accounting, bond pricing, pension obligations, and capital budgeting.
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Used in Formula
- Future Value (Single Sum)Used in: Future Value (Single Sum)
External Links
- Present value — Wikipedia