Present value factor

Definition:

Factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)].

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Up volume

When a stock closes increases in value on a particular day, the volume in that stock is considered up volume. Related: Down volume.

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