Real Estate Curve

Everything To Know About Real Estate

Jan-18-2008

Present Value

Present Value – a method of arriving at an appropriate price or value today for the right to receive either a level cash flow over time (present value of annuity), or a lump sum later in time (present value of 1). The essence of the concept is that money received today is generally preferred over money received later. The quantification of that preference is what determines the prevailing rate of interest at given time.

Posted under Real Estate Terms

Add A Comment