Present Value Factor Definition & Application Wiki

Present Value Factor Definition & Application Wiki

Last Updated by WikiWealth

Short Definition

Mathematical factor used to find the present fair value of future cash flows. The factor is contingent on the discount rate applied to free cash flow. A higher discount rate increase the factor, which decreases the present value of cash flows.

Long Definition

See Dictionary Terms

See Academic Resources

Source: http://en.wikipedia.org/wiki/Present_value