present value

noun

: the sum of money which if invested now at a given rate of compound interest will accumulate exactly to a specified amount at a specified future date

Examples of present value in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Ohtani’s contract has a net present value (NPV) of roughly $46 million a year. Kurt Badenhausen, Sportico.com, 3 Sep. 2019 Some of the determinants that sway decision making include: the value of civil and criminal fines, the enforcement of the violations, and the net present value of payoffs for accepting bribes. Matt Rybaltowski, Forbes, 25 Nov. 2024 Boeing's present value is a good starting place for individuals with a long-term investing view, particularly as cultural changes and operational recovery advance. Jim Osman, Forbes, 24 Oct. 2024 To put it another way, no rational businessperson would pay the net present value of a business simply to buy the property, as is implicit in Beasley Timber's position equating the two values. Peter J Reilly, Forbes, 15 Oct. 2024 See all Example Sentences for present value 

Word History

First Known Use

1831, in the meaning defined above

Time Traveler
The first known use of present value was in 1831

Dictionary Entries Near present value

Cite this Entry

“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 15 Dec. 2024.

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