present value
noun
: the sum of money which if invested now at a given rate of compound interest will accumulate exactly to a specified amount at a specified future date
Examples of present value in a Sentence
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However, the total compensation of $90.2 million has a net present value of just $3.6 million, using a 10% discount rate to reflect the time-value of money, the KMA analysis determined.
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Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025
This involves estimating all future cash flows expected from an asset and then discounting them to arrive at their present value.
—Tomas Milar, Forbes.com, 21 July 2025
The fee is over multiple years, resulting in a net present value of between $400 million and $450 million, depending on the discount rate applied.
—Kurt Badenhausen, Sportico.com, 8 July 2025
That doesn’t mean the smart play is always to trade potential future value for present value.
—Grant Brisbee, New York Times, 19 June 2025
See All Example Sentences for present value
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Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025
This involves estimating all future cash flows expected from an asset and then discounting them to arrive at their present value.
—Tomas Milar, Forbes.com, 21 July 2025
The fee is over multiple years, resulting in a net present value of between $400 million and $450 million, depending on the discount rate applied.
—Kurt Badenhausen, Sportico.com, 8 July 2025
That doesn’t mean the smart play is always to trade potential future value for present value.
—Grant Brisbee, New York Times, 19 June 2025
See All Example Sentences for present value
Cite this Entry
“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 3 Aug. 2025.
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