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Medical Isotope Production Without Highly Enriched Uranium (2009) / Chapter Skim
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Appendix F: Present Value Calculation
Pages 194-195

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From page 194...
... This means that the value of a dollar received in the future is discounted relative to a dollar received now. Mathematically, the present value, PV, of $1 received in one year is 1 PV = 1+ i where i is the appropriate real discount rate; it might, for example, reflect a company's real return on investment or an individual's real saving rate.
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From page 195...
... As amounts are received further in the future, n increases and the present value of that amount decreases. Table 10.1 supposes that firms receive an incremental increase in revenues each year over a fixed number of years, 55 or 30.
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Key Terms

  • real return
  • dollar received
  • amounts measured
  • positive real
  • company receives

  • called current
  • lar received
  • called constant
  • real discount
  • saving rate

  • thereby providing
  • appropriate real
  • discounted relative
  • real saving
  • value factor

  • sometimes called
  • real dollar
  • main reasons
  • incremental increase
  • payment streams

  • denoted ain
  • firms receive
  • amount decreases


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