Money · RATIOXA GLOSSARY

Present value

Value today of a future payment discounted at a chosen rate.

01

Simple definition

Value today of a future payment discounted at a chosen rate.

02

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.

03

Worked example

€1,100 in one year has a €1,000 present value at a 10% discount rate.