Money · RATIOXA GLOSSARY
Present-value factor
Factor converting a future amount to today using time and discount rate.
Simple definition
Factor converting a future amount to today using time and discount rate.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
At 5%, €1 in one year is worth about €0.952 today.