present value

noun

: the sum of money which if invested now at a given rate of compound interest will accumulate exactly to a specified amount at a specified future date

Examples of present value in a Sentence

Recent Examples on the Web His conclusion that the net present value from disposing of various pieces at prices ranging from $12,500 to $100.000 per acre over ten years was between $1.78 million and $4.27 million. Peter J Reilly, Forbes, 25 Feb. 2024 Although Ohtani’s total guarantee was a record-breaking $700 million, the MLBPA calculated its net present value to be only $437.5 million. Jack Harris, Los Angeles Times, 20 Feb. 2024 For example, an organization leveraging Magnit Integrated Workforce Management Platform can expect to realize a 366% return on investment over three years and $32.3 million in net present value over that same period, according to a recent Forrester Total Economic ImpactTM study. Magnit Contributor, Forbes, 26 Jan. 2023 Since 2019, Georgetown University's Center on Education and the Workforce has ranked 4,500 colleges by their return on investment, calculating their net present value (NPV) at various intervals, from the 10 years post-graduation up to the 40-year mark. Leena Kim, Town & Country, 16 Dec. 2022 However, the net present value of down time, upgrades, and maintenance must be calculated into the $65k number. IEEE Spectrum, 26 Aug. 2014 Whether one sees $420 billion in present value as a lot or a little to spend on the goal of relieving several generations of students of what is, for many of them, a crushing burden, depends on one’s general economic and political vantage points. Michael Hiltzik, Los Angeles Times, 27 Sep. 2022 The present value of those future profits are worth less as yields rise. Fortune, 28 Aug. 2022 But the present value of those payments after 7% inflation is $222,751.31, not $320,000. Dallas News, 27 Mar. 2022

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'present value.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1831, in the meaning defined above

Time Traveler
The first known use of present value was in 1831

Dictionary Entries Near present value

Cite this Entry

“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 17 Apr. 2024.

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