Present Value Formula

The present value formula is a tool investors and business owners use to estimate if an investment made today for a given rate of return will be worth the money they put into it.

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Here’s what the formula looks like: Present value (PV) = C / (1 + r)^n

Where:

C = the future return or cash flow
r = the rate of return or the discount rate n = is the number of periods

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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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