HomeDefinitionsCompareDebt Present valueThe financial definition for Present value:The 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. 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. AIMR Performance Presentation Standards Implementation CommitteeAIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR) Performance Presentation Standards Implementation Committee is charged with the responsibility to interpret, revise, and update the AIMR Performance Presentation Standards (AIMR-PPS(TM) for portfolio performance presentations. Net adjusted present valueNet adjusted present valueThe adjusted present value minus the initial cost of an investment. Further SuggestionsNet present value (NPV)Net present value of growth opportunities Net present value rule Present value factor Present Value Index (PVI) Present value of growth opportunities Proportional representation Click to compare definitions of Present value Click to view definitions beginning pr |