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LSDefine

Simple English definitions for legal terms

present value

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A quick definition of present value:

Present value is the amount of money you need today to have a certain amount of money in the future. It takes into account the interest you could earn on that money over time. For example, if you want to have $100 in one year and the interest rate is 5%, the present value would be $95.24. This is important for making financial decisions and evaluating investments.

A more thorough explanation:

Present value refers to the current value of a future sum of money, taking into account the time value of money and potential interest earned or inflation. It is the amount of money that would need to be invested today to reach a specific future value.

  • If you want to have $10,000 in five years, and the interest rate is 5%, the present value of that amount would be $7,835.73. This means that if you invest $7,835.73 today at 5% interest, it will grow to $10,000 in five years.
  • A company is considering investing in a new project that will cost $50,000 upfront but is expected to generate $70,000 in five years. The present value of this investment would be calculated by discounting the future cash flows by the cost of capital, resulting in a net present value of $16,386. This means that the investment is profitable and worth pursuing.

These examples illustrate how present value is used to determine the current worth of future cash flows. By calculating the present value, individuals and companies can make informed decisions about investments and financial planning.

present use | preservation order

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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