Present Value (PV) 

Present Value (PV) is a financial principle that determines the current worth of a sum of money or stream of cash flows to be received in the future, discounted back at a specific interest or discount rate. 

Formula: 

 PV = Future Value / (1 + r)^n 

Where: 

 r = Discount rate 

 n = Number of periods 

PV is crucial in investment analysis, project valuation, and financial modeling because it accounts for the time value of money, recognizing that a dirham today is worth more than a dirham in the future due to inflation and opportunity costs.