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.
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.
Note that the fist two approaches represent the net present value rule, the third is a variant of the IRR approach and the last is the marginal rate of return approach.
Net Present Value (NPV) is the difference between the present value of all future benefits of an investment and the present value of all capital contributions.
The same four scenarios that had positive net present values had positive internal rates of return.
The Net Present Value of the project is thought of as the expected increase in the value of the firm resulting from undertaking that particular project (Moyer et al, 2001:342).
Figure 2 summarizes the net present values based on their education level and birth year.
A simple way to think about the effects of optimism on project selection is to imagine a ranking of all projects by their net present values. In this simple model, the optimistic managers' ranking will be the same as the rational one, but their optimism will lead to the perception of a "cutoff" that is too low.
Instead of simply adding together each year's cost or benefit, net present value analysis first converts the value of future costs and benefits to their actual value today.
The last comparison of Table 4 is between the net present values of a project in the developed areas, and a project located in the underdeveloped area that enjoys three tax concessions i.e.
In dealing with REO, however, the lender is no longer a lender but an investor, and as such would gravitate to the net present values.