Present value factor

Also found in: Acronyms.

Present value factor

Factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)].

Present Value Factor

An estimate of the present value of future cash flow for a project.
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The equation to use is: loss per month x present value factor = present value of loss.
0% Future value sale proceeds $13,439,157 Present value factor for proceeds 0.
This factor is none other than the present value factor of a series of income flows that change by a constant rate divided by the present value factor of the level annuity.
Section L: Present value factor level annual equivalent (PVFLAE) that is the LAE for constant rate changes
This is accomplished by discounting each after-tax cash flow through the use of present value factors reflective of the age of the cash flow.
If MP discounting is, in fact, the best fit for a particular property type in terms of computing present value factors to apply to NOL it follows that values derived by BOP discounting and EOP discounting are both inaccurate to the extreme.

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