present value index

简明释义

现值指数

英英释义

例句

1.Investors often look at the present value index to determine the feasibility of long-term investments.

投资者通常查看现值指数以确定长期投资的可行性。

2.The financial analyst calculated the present value index to evaluate the profitability of the project.

金融分析师计算了现值指数以评估项目的盈利能力。

3.In capital budgeting, the present value index helps in comparing different projects.

在资本预算中，现值指数有助于比较不同的项目。

4.A present value index greater than one indicates that the investment is expected to generate more cash than it costs.

一个大于一的现值指数表明投资预计会产生比成本更多的现金流。

5.A higher present value index suggests a more attractive investment opportunity.

更高的现值指数表明更具吸引力的投资机会。

作文

In the realm of finance and investment, understanding various metrics is crucial for making informed decisions. One such metric that plays a significant role in evaluating investment opportunities is the present value index. The present value index (PVI) is a financial tool used to assess the attractiveness of an investment by comparing the present value of future cash flows to the initial investment cost. This index helps investors determine whether a project or investment is worth pursuing based on its potential return. To comprehend the significance of the present value index, one must first grasp the concept of present value itself. Present value refers to the current worth of a sum of money that is expected to be received or paid in the future, discounted at a specific interest rate. By discounting future cash flows to their present value, investors can account for the time value of money, which states that a dollar today is worth more than a dollar in the future due to its potential earning capacity.The present value index is calculated by dividing the total present value of future cash flows by the initial investment cost. A PVI greater than 1 indicates that the investment is expected to generate more cash than the cost incurred, making it a favorable option. Conversely, a PVI less than 1 suggests that the investment may not yield sufficient returns to justify the initial expenditure.For example, consider a project that requires an initial investment of $100,000 and is expected to generate cash flows of $30,000 per year for five years. If we assume a discount rate of 10%, the present value of those cash flows can be calculated using the formula for present value. Once we have the present value, we can calculate the present value index to assess the viability of the project.Investors often utilize the present value index alongside other financial metrics, such as the net present value (NPV) and internal rate of return (IRR), to make comprehensive investment decisions. While NPV provides the absolute value of the investment's profitability, the PVI offers a relative measure that can be particularly useful when comparing multiple projects with different scales and cash flow patterns.Moreover, the present value index can also serve as a decision-making aid in capital budgeting. Companies often face numerous investment opportunities, and the PVI allows them to prioritize projects based on their expected returns relative to costs. By focusing on investments with a higher PVI, organizations can allocate resources more effectively and enhance overall profitability.In summary, the present value index is a valuable financial metric that assists investors and businesses in evaluating the attractiveness of investment opportunities. By understanding the present value of future cash flows and comparing it to the initial investment, stakeholders can make informed decisions that align with their financial goals. As a result, the present value index is an essential tool in the toolkit of any investor or financial analyst seeking to navigate the complex landscape of investment options. Its ability to simplify the evaluation process while accounting for the time value of money makes it indispensable in the world of finance.

在金融和投资领域，理解各种指标对于做出明智的决策至关重要。其中一个在评估投资机会时发挥重要作用的指标是现值指数。现值指数（PVI）是一种财务工具，用于通过比较未来现金流的现值与初始投资成本来评估投资的吸引力。这个指数帮助投资者判断一个项目或投资是否值得追求，基于其潜在回报。要理解现值指数的重要性，首先必须掌握现值的概念。现值是指在特定利率下，预计将在未来收到或支付的一笔钱的当前价值。通过将未来现金流折现到其现值，投资者可以考虑货币的时间价值，这一原则表明今天的一美元比未来的一美元更有价值，因为它具有潜在的收益能力。现值指数的计算方法是将未来现金流的总现值除以初始投资成本。PVI大于1表示该投资预计产生的现金流超过了所花费的成本，使其成为一个有利的选择。反之，PVI小于1则表明该投资可能无法产生足够的回报来证明初始支出。例如，考虑一个需要10万美元初始投资的项目，预计在五年内每年产生3万美元的现金流。如果假设折现率为10%，可以使用现值公式计算这些现金流的现值。一旦我们得到现值，就可以计算现值指数以评估该项目的可行性。投资者通常将现值指数与其他财务指标（如净现值（NPV）和内部收益率（IRR））一起使用，以做出全面的投资决策。虽然NPV提供了投资盈利能力的绝对值，但PVI提供了相对度量，这在比较具有不同规模和现金流模式的多个项目时尤其有用。此外，现值指数还可以作为资本预算中的决策辅助工具。公司通常面临众多投资机会，而PVI使它们能够根据预期回报相对于成本来优先考虑项目。通过关注具有较高PVI的投资，组织可以更有效地分配资源，并提高整体盈利能力。总之，现值指数是一个有价值的财务指标，帮助投资者和企业评估投资机会的吸引力。通过理解未来现金流的现值并将其与初始投资进行比较，利益相关者可以做出与其财务目标一致的明智决策。因此，现值指数是任何寻求在复杂投资选项中导航的投资者或金融分析师工具箱中的一个重要工具。它简化了评估过程，同时考虑了货币的时间价值，使其在金融世界中不可或缺。