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Net Present Value
The calculation used to find today’s value of a stream of future payments or receipts, by discounting them using a specific rate of return.
Investment
Investment refers to the allocation of resources, such as capital, time, or assets, with the expectation of generating profit or income, involving mechanisms like stocks, bonds, real estate, or other financial vehicles.
Present Value Factors
Multipliers used to calculate the present value of a future sum of money or stream of cash flows given a specific interest rate.
Compound Interest
Interest computed on the original amount of a deposit or loan, incorporating all previously accrued interest from past periods.
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