Editing Present value (section)

==Present value method of valuation==
An investor, the lender of money, must decide the financial project in which to invest their money, and present value offers one method of deciding.<ref name=Moyer/>
A financial project requires an initial outlay of money, such as the price of stock or the price of a corporate bond. The project claims to return the initial outlay, as well as some surplus (for example, interest, or future cash flows). An investor can decide which project to invest in by calculating each projects’ present value (using the same interest rate for each calculation) and then comparing them. The project with the smallest present value – the least initial outlay – will be chosen because it offers the same return as the other projects for the least amount of money.<ref name=Broverman/>