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After working on an assembly line for several months,you feel there are more efficient and effective ways to go about constructing the widgets.You go to your manager and tell him what you experienced,your ideas,and your thoughts.What have you just demonstrated?
Present Value
The worth as of today of a future money sum or cash flow series, taking into consideration a specific rate of return.
Present Values
This is a concept in finance that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.
Discount Rate
This rate is applied in the framework of DCF analysis for the purpose of calculating the current value of foreseeable cash flows.
Compounded Annually
Compounded annually refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.
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