PV meaning in Accounts and Finance ?

Answer:

What is Present Value mean?

In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is usually less than the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of zero- or negative interest rates, when the present value will be equal or more than the future value. Time value can be described with the simplified phrase, "A dollar today is worth more than a dollar tomorrow". Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.

Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times, since time dates must be consistent in order to make comparisons between values. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.

reference

Full Form	Category
Picovolt	Academic & Science
Phrasal Verb	Academic & Science
Peroxide Value	Academic & Science
Potential Vorticity	Academic & Science
Present Value	Accounts and Finance
Principle Value	Accounts and Finance
Page Views	Business
Payment Voucher	Business
Pfeiffer Vacuum Technology, A. G.	Business
Promotion Video	Business
Presta Valve	Business
Performance and Value	Business
Pocket Viewer	Business
Production Value	Business
Pressure Volume	Chemistry
Pore Volume	Chemistry
Pleasant Village	Community
Performance Video	Community
Perspective View	Community
Promotional Video	Community
Picture Viewer	Computer Hardware
Paravirtualization	Computing
Power Version	Computing
Penobscot Valley	Earth Science
Potomac Valley	Earth Science
Power Voltage	Electronics
Photovoltaic(s)	Electronics
Peak To Valley	Electronics
Photovoltaic	Electronics
Pulsed Vertical	Electronics
Analysis Data (phase Vocorder)	File Type
Protection Value	General
Pulmonary veins	General
Planned Value	General
Pusarla Venkata	General
Partido Verde	General
Private viewing	General
Parole Violation	General
Page View	General
Portal Vein	General
Person Vagn	General
Proposed Vegetable	General
Position Velocity	General
Partidul Verde	General
Private Venture	General
Pham Van	General
Persistent Variables	General
Pressure Velocity	General
Prsent Value	General
Performance Variant	General
Planet Vampire	General
Pretend And Verbose	General
Peder Voroyob	General
Pernicious Vengeance	General
Princess Vegeta	General
Personal Volume	General
Pacific Valley	General
Prairie View	General
Pressure Valve	General
Pipe Viewer	General
Process Verbal	General
Pipet Volumes	General
Princess Vyssa	General
Parameterised View	General
Process Variable	General
Processed Value	General
Parasitophorous Vacuole	General
Promotional Videos	General
Planet Vegeta	General
Pool View	General
Portieux Vallerysthal	General
Posterior Vitreous	General
Previous Visits	General
Passive Voice	General
Process Value	General
Procure Ville	General
Pleasant Valley	General
Prescott Valley	General
Picture Video	General
Privileged Voices	Governmental
Personal Vehicle	Governmental
Project Vote	Governmental
Palos Verdes	Governmental
Probation Violation	Governmental
Peasant Village	Governmental
Passenger Vehicle	Governmental
Pine Valley	Governmental
Planed Value	Governmental
Pursued Vehicle	Governmental
Paradise Valley	Governmental
Parole Violator	Governmental
Process Validation	Governmental
Permanent Visa	Governmental
Private Vehicle	Governmental
PALLAVARAM	Indian Railway Station
Physical Volume	Information Technology
Pavia (Provence)	International
Provision	International
Phaseolus Vulgaris	International
Private Chat	Internet
Previously Viewed	Internet
Percent Vectorization	Maths
Previous Value	Maths
Polynomially Verifiable	Maths
Pharmacovigilance	Medical
Paravertebral	Medical
Papiloma Virus	Medical
Peripheral Vision	Medical
Per Vaginal	Medical
Per Vaginam (via the vagina)	Medical
Polio Virus	Medical
per vaginam (vaginally) [Lat.]	Medical
Pemphigus Vulgaris	Medical
per vaginam [Lat.] by vaginal route	Medical
Point / Performance Value	Messaging
Production Validation	Military and Defence
Prime Vendor	Military and Defence
Product Volume	Physics Related
Plasma Volume	Physics Related
Pressure Vessel	Physics Related
Prior Variance	Real Estate
Pre-valve	Space Science
Pole Vault	Sports
Point Value	Sports
Principal Value	Stock Exchange
Pathovar	Trees & Plants