Show/Hide Toolbars

HOMER Pro 3.14

Navigation: Glossary

Present Value

Scroll Prev Top Next More


The present value is the current equivalent value of a set of future cash flows, taking into account the time value of money.

For example, if the real interest rate is 6%, the present value of a $1000 payment twelve years in the future is $1000 / ((1.06)^12) = $497.

See also

Real discount rate

Capital recovery factor

Future value