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present value |
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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| 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). Therefore systematical errors cannot be decreased much below their present values. They capture and present values and priorities, rather than just numbers and charts. |
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