A1 an electronic machine that is used for storing, organizing, and finding words, numbers, and pictures, for doing calculations, and for controlling other machines: a personal/home computer. All our customer orders are handled by computer. We've put all our records on computer. computer software/hardware.
Net present value is the sum of all discounted cash inflows and outflows. A discounted cash flow is equal to the cash flow divided by one plus the interest rate to the power of the period the cash flow occurs. The dollar value of the initial project cash outlay is a negative number already at present value.ominal Net Present Value. In the standard net present value calculation, the discount rate includes the effects of inflation. As an alternative, you can calculate net present value by converting the real cash flows to nominal cash flows and use a nominal discount rate. Both methods yield the same final number.
Q. What exactly is Present Value in relation to a settlement offer? The carrier is making structure offers by quoting present value but won't tell me the cost. A. Present Value (PV) is merely an attempt to calculate a value to future payments in today's dollars. The mathematical calculation that is used in determining present value is dependent on the interest assumption (discount rate), which could be entirely arbitrary or could be based on an average. A difference of a percentage point could make a major difference in present value, possibly hundreds of thousands of dollars! Present Value offers are approximations. Should you rely on it to settle your case, without knowing the assumptions, you won't really know what you are settling for.