Special | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL
P |
|---|
PVthe current value of a future sum of money or stream of cash flows given a specified rate of return | ||
PerpetuityA perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end. | ||
Perpetuity and annuityA perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end. An annuity is a financial product that pays out a fixed stream of payments to an individual. These financial products are primarily used as an income stream for retirees. Annuities are created and sold by financial institutions, which accept and invest funds from individuals. Upon annuitization, the holding institution will issue a stream of payments at a later point in time | |
PerpetunityA stream of level cash payments that never ends. | ||
Present ValuePresent value is the current value of a future sum of money or stream of cash flows given a specified rate of return | ||
Present Value - Cash FlowPresent value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations. - Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow. | |
Present Value, Cash FlowsPresent value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations. - Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow. | |
Present Value, Time value of money- To calculate present value, we discounted the
future value at the interest rate. The
calculation is thereforce termed a discounted
cash-flow(DCF) calculation, and the interest
rate is known as the discount rate. - This is the basic principle of finance that a dollar received today is more valuable than a dollar received in the future. Why would an investor choose to take the money today if he had the choice between today and next year? }. Money has time value because of interest rate, risk, expected inflation. | |
Present Value-PVPresent value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations. | |