The present value of a payment due to be received in the future. If a payment of amount A is due t periods into the future and the proportional interest rate remains constant at r per period, the present discounted value is given by V = A/(1 + r)^t = A(1 + r)^−t. The present discounted value of a stream of receipts spread over time is the sum of the present discounted values of the various parts of the stream. See also discounted cash flow.