The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor . For example, if the opportunity cost of funds is 10%, the present value of $100 to be received in one year is $100x(1/1 + .10)=$91.
PRESENT VALUE
Meaning of PRESENT VALUE in English
Campbell R. Harvey. Hypertextual finance English glossary. Английский словарь гипертекстовых финансов. 2012