present value


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Related to present value: Future value, Net present value, present value of annuity, present value tables, Time value of money

present value

[′prez·ənt ′val·yü]
(mining engineering)
The sum of money which, if expended on a mine for purchase, development, and equipment, would produce over the life of the mine a return of the original investment plus a commensurate profit.
References in periodicals archive ?
However, if we include the insight that "[competition between investors creates a tendency for the net present value of an investment project to equal zero" (Fuller, 2013, p.
When planning their reactions to the current economy, it's important for our clients to know the worth of their assets," said Chris Kinzie, Present Value co-founder.
In year 4 the intrinsic values for the 14 paths not previously truncated are probability-weighted and discounted to determine their present values (that is, the probability is multiplied by the option's intrinsic value and discounted by the risk-free interest rate to determine the path's present value).
These results are based on 1,000 projections of the sample insured's lifetime using a Monte Carlo method and the same mortality rates used to calculate the life expectancy for deterministic pricing and the present values of premiums and benefits for probabilistic pricing.
First you must determine a measure of the Net Present Value as a quotient ([NPV.
Typically, the net present value savings can range from 2% to 5%.
For purposes of calculating the proportional rental amount, the present value of any amount is determined using a discount rate equal to 110 percent of the AFR for the section 467 rental agreement.
If you started taking withdrawals after five years but over a five-year period, the present value of the deductible IRA is $1,081, while the Roth IRA is $1,501, a difference of $420.
A buyer would be willing to pay the present value of $8,000 a year.
Your opponent calls a "pension expert" to the stand to testify as to the present value of a marital pension benefit.
In fact, with some electromechanical devices, these costs far outweigh the initial purchase price, so Net Present Value calculations are well worth doing.
The application of the DCF technique requires five specific steps to arrive at a net present value.

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