Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

present value

Read a random definition: like

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

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
LSD+ is ad-free, with DMs, discounts, case briefs & more.