Present value

Present value or present value is the current value of a future cash flow. With the same interest rate and annual payments, it makes it possible to determine the amount of the future investment at the present time. It is determined by discounting all future incoming and outgoing payments to the current point in time.

It is important for the valuation of companies, receivables or financial products. In this way, you can compare different financial investments and assets with specific terms and interest rates.

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