reversionary factor

reversionary factor definition - business

reversionary factor

The number that is divided into a future amount in order to calculate the future amount's present value. For example, the reversionary factor to calculate the present value of $1,000 to be received in five years at an annual discount rate of 6% is 1/(1.06) 5.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.