Present Value
Present Value: Present value is the current value of an amount in the future. If we talk about economics, present value, is referred to as present discounted value and in finance it is called cash flow , is a future amount of money that is discounted to reproduce its present value, as if it lived today. The present discount value is always fewer than or equivalent to the future value since money has interest-earning potential, a feature refers to as the time value of money.