What is "present value"? What is an example of the "present value" concept?© BrainMass Inc. brainmass.com June 3, 2020, 8:06 pm ad1c9bdddf
Present value is the future value being discounted by an appropriated capitalization rate. The value of sum of money received today is more than its value received after some time.
In other words present worth of rupee received after some time will be less than the rupee received today. This is because of time value of money. The investor has time preference of money because he has reinvestment opportunities for funds, which are ...
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