Present value (PV) calculates what a future sum of money is worth today. It is based on the time value of money, which assumes money today is more valuable than the same amount in ...
Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Marguerita is a Certified Financial Planner (CFP), Chartered Retirement Planning Counselor ...
Learn about Net Present Value (NPV), including its definition, calculation, interpretation, application, and pros & cons. Discover available alternatives.