Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

Present value (PV) is an accounting term meaning the value today of some amount of money expected to be available one or more years in the future. The concept behind this is that money available in ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...

Too many financial decisions are made without factoring in the time value of money. Whether providing financial planning advice related to a client’s retirement, advising a client about a business ...

IN LITIGATION INVOLVING FUTURE ECONOMIC damages, experts’ calculations must discount the amounts to present value. The courts have offered little guidance on appropriate discount rates. BUSINESS ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. CVAT ensures a policy's cash value doesn’t exceed the present value of future premiums.

The current value of a cash payment which will be received in the future. Companies use present value calculations to measure the return on their capital investments. Investors can use present value ...