present value

(redirected from Net present value)
Also found in: Dictionary, Financial, Acronyms, Wikipedia.

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 ?
It will depend on the interest rate, and the Net Present Value (NPV) of the project with greater present value will be zero, while the less valuable project's NPV will be negative.
THAT FIGURES: Chancellor Gordon Brown announced the rules in his April Budget, which means tenants have to pay 1pcof the net present value
The result is the net present value (net because the initial investment is subtracted, present value because the stream of benefits is discounted by the cost of capital).
Table 1 Net Present Value of the Investment Proposal ($ Values in Thousands and Rounded) Year 0 1 2 3 4 5 6 Cash Flow (125) 9 10 (364) 35 38 40 Terminal 610 Value * Discount Factor at 1.
To take the Government's example, a 10-year lease with a pounds 10,000pa rent will have total rental payments of pounds 100,000 which, when discounted, will give a net present value of pounds 83,166.
Net present value analysis closely matches the criteria that governments implicitly use when making long-term decisions--meaning that it gives a lower value to dollars in the future.
phi]UD = Net present value of a project in an underdeveloped area.
You couldn't know this without looking at net present value.
The application of the DCF technique requires five specific steps to arrive at a net present value.