Present value; actual cash value (ACV)

The market price today of a cash flow that will only occur in the future, its present value. – In property insurance, the new value as the current market price of an insured object less the time-related decline in value, i.e. a deduction for past use (in insurance AVC is calculated by subtracting depreciation from the replacement cost of the property. Hence the actual cash value will always be less than the cost to replace the property). – See discounting, present value, market value, timeline.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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