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LSDefine

Simple English definitions for legal terms

present value

Read a random definition: Indian Child Welfare Act

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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Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
18:48
true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
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