2 ms·
"Present value" is definitionally what you can trade the income stream for in the present, which amongst other things depends on your discount rate or time pref
by fiatmoney 11y ago
"Present value" is definitionally what you can trade the income stream for in the present, which amongst other things depends on your discount rate or time preference. It begs the question to say that they sold it for "less than the present value (to them)".