present value

noun

1. the current capital value of a future income or outlay or of a series of such incomes or outlays. It is computed by the process of discounting at a predetermined rate of interest

Example Sentences

Whatever the risk of AI, it’s quite possible, in present value terms, its risk is dwarfed by the risk to humanity’s longevity of not developing AI.

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A 2016 study External link by the National Academies of Sciences, Engineering, and Medicine estimated the average immigrant contributes a net present value of $259,000 to federal, state, and local governments.

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It’s a contract structure that works for all involved parties: The Dodgers get to reduce the hit against their luxury tax payroll, while players preserve the present value of their deals.

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The $855 billion figure represents the present value of mangroves' flood protection services, i.e., the benefits of this natural infrastructure over the next 100 years.

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As the historian William N. Goetzmann has written, the related idea of net present value "is the most important tool in modern finance."

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