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Project Management & Agile · Intermediate

Present Value

The current worth of a future sum discounted at a given rate: PV = FV / (1 + r)^n.

Definition

Present value enables comparison of cash flows at different times.

Example

$110,000 received in one year at 10% has a present value of $100,000.

Exam tip

Do not confuse financial present value with EVM planned value; both abbreviate PV.

Related terms