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English definition of “present value”

present value

noun [C or U]
 
 
( abbreviation PV, also present discounted value)
ACCOUNTING the value today of an amount of money that you expect to receive in the future, considering the fact that a future payment is worth less than one received now: The gift, paid as an annuity, has a present value of $175 million. The value of a company's shares should equal the discounted present value of its future profits. → See also net present value
(Definition of present value from the Cambridge Business English Dictionary © Cambridge University Press)
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