núvæðagildi
Núvæðagildi is an Icelandic term that translates to "present value" in English, a fundamental concept in finance. It refers to the current worth of a future sum of money or stream of cash flows, given a specified rate of return. This rate of return is often referred to as the discount rate, and it represents the opportunity cost of capital or the interest rate that could be earned on an investment with similar risk.
The core idea behind present value is that money available at the present time is worth more
This concept is crucial for making informed financial decisions, such as evaluating investment opportunities, determining the