capitalized value of future income

0.01 sec.

The value today of the right to receive income in the future. The concept rests on the principle that no one would pay $120 today for the right to receive $120 one year from today. Neither would anyone pay $120 today for the right to receive $10 per month over the next 12 months. Add to that the idea that relative risk affects a person's decision making. You might place $120 in an FDIC-insured savings account today,in order to receive $140 in one year. But,would you pay $120 to an out-of-work student,in exchange for her promise to pay you $140 in one year? Probably not.These two concepts—the time value of money and the evaluation of risk— are at the heart of discounting.Discounting is the basic tool for reaching a capitalized value of future income.See present value or discounted cash value.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			capital-asset pricing model Capital-Intensive Capital-risque Capitale Capitale autorizzato Capitale azionario Capitale d'esercizio Capitale sotto rischio Capitalism Capitalism amiguista Capitalisme de connivance Capitalismo Capitalismo entre amigos Capitalist Capitalizacion bursatil Capitalization Capitalization Method capitalization rate Capitalization ratios Capitalization Table Capitalization-Weighted Index capitalize Capitalized capitalized closing costs Capitalized Interest capitalized value of future income capitalized value of property Capitaux empruntes Capitaux etrangers Capitaux febriles Capitulation CAPM Capofamiglia Capped Floating Rate Note Capped Option Capped-Style Option Capping Caps Captacion de fondos Captive Finance Company Captura de dividendos capture rate Caput CAR Car Insurance Caracas Stock Exchange caravan Carbon Trade Cardboard Box Index CARDs Career			Capitalization, Usage, Punctuation, &, Spelling Capitalization-weighted Capitalization-weighted index Capitalization-Weighted Indexes Capitalization-Weighted Indices Capitalization-weighting capitalizations capitalizations capitalizations capitalizations capitalize capitalize capitalize capitalize Capitalize on Capitalize on Capitalize on capitalize upon capitalized capitalized capitalized capitalized Capitalized Assets Management System capitalized closing costs Capitalized interest Capitalized Manufacturing Variances Capitalized Mortgage Servicing Rights Capitalized value Capitalized value Capitalized value capitalized value of future income capitalized value of property Capitalized Value of Rent Expense capitalizes capitalizes capitalizes capitalizing capitalizing capitalizing capitally capitally capitally capitally capitally Capitalness Capitals Capitals Capitals Capitals Capitals Capitals Capitals of Egypt Capitals of Holland Capitals of Holland Capitals of Japan Capitals of North Korea Capitals of North Korea Capitals of South Korea Capitals of South Korea Capitals of the Netherlands Capitals of the Netherlands

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.