present-value factor


Accounting dictionary. 2014.

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  • present value factor — factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost ( opportunity costs) of funds is 10% over next year, the factor is [1/(1 + 0.10)]. Bloomberg Financial Dictionary …   Financial and business terms

  • Present value factor — Factor used to calculate an estimate of the present value of an amount to be received in a future period. The New York Times Financial Glossary …   Financial and business terms

  • present-value factor — See discount factor …   Big dictionary of business and management

  • present value — 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… …   Financial and business terms

  • Present Value Interest Factor - PVIF — A factor that can be used to simplify the calculation for finding the present value of a series of values. PVIFs can be presented in the form of a table with PVIF values seperated by respective period and interest rate combinations. The r… …   Investment dictionary

  • Present Value Interest Factor Of Annuity - PVIFA — A factor which can be used to calculate the present value of a series of annuities. The initial deposit, earning interest at the periodic rate (r), perfectly finances a series of (N) consecutive dollar withdrawals. PVIFA is also a variable used… …   Investment dictionary

  • present value — discounted value The result arrived at in a discounted cash flow calculation by multiplying a projected annual cash flow figure by a discount factor derived from a hurdle rate of interest and a time period …   Accounting dictionary

  • present value — discounted value The result arrived at in a discounted cash flow calculation by multiplying a projected annual cash flow figure by a discount factor derived from a hurdle rate of interest and a time period …   Big dictionary of business and management

  • Net present value — In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when… …   Wikipedia

  • net present value — NPV A method of capital budgeting in which the value of an investment is calculated as the total present value of all cash inflows, cash outflows minus the cost of the initial investment. If the net present value is positive the investment should …   Accounting dictionary

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