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Present valueThe value today of a stream of payments and/or receipts over time in the future and/or the past, converted to the present using an interest rate. If Xt is the amount in period t and r the interest rate, then present value at time t=0 is V = St (Xt)/(1+r)t.Present valueThe amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor. For example, if the opportunity cost of funds is 10%, the present value of $100 to be received in one year is $100 x [1/(1 + 0.10)] = $91.Present value Similar MatchesAdjusted present value (APV)Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity (present value of unlevered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leveraged buyout. Registered RepresentativeRegistered RepresentativeAlso known as account executive, customers' broker, or similar title. Describes full-time New York Stock Exchange member organisation sales people who have met the NYSE background and industry knowledge requirements. Present StatePresent StateIn a force field analysis, the description of an organization as it currently exists. It includes what happens in the organization, both formally and informally. Present Value Index (PVI)Present Value Index (PVI)The ratio of the NPV of a project to the initial outlay required for it. The index is an efficiency measure for investment decisions under capital rationing. Present value factorPresent value factorFactor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)]. Further SuggestionsAIMR Performance Presentation Standards Implementation CommitteeProportional representation Appointed representative Net present value Net adjusted present value Net present value rule Net present value of growth opportunities Present value of growth opportunities company representative (tied agent) Registered representative Net present value (NPV) net present value |
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