But the present value, what does that mean?

We tend to, all of us even those of us who work in marketing to think of value in two ways.

And that's pretty good.

Let's take a look at some value proposition examples.

So it equals 104,76.

It is personal reality.

Actually I meant to present value it.

Is this the best we can do?

We'll now learn about what is arguably the most useful concept in finance and that is called the present value.

But that's just 1.02 divided by 1, which is just 100. 100 today.

Present value of 100 today is 100.

A tree is known by its fruit.

Oh no, I didn't.

By applying this update equation recursively, we can attain this value function over here.

Why is that?

What's the present value of 50 in 1 year?

Hopefully people will be watching this in the next millenia.

Now what's our mantra of this day and age I wonder?

But if you were to present value this let's say they make 1 forever going into the future and you were to present value this using a discount rate.

When you lower the interest rate, the present value of this future payment goes up.

It's what the market is willing to give for it.

let me just scroll down so let's say that one year so today, one year so we figured out that 110 a year from now, its present value is equal to so the present value of 110 is equal to 104,76.

That is 100.

So in the next video we'll talk a little bit about how do people actually determine what something is worth?

And the best thing that we as humans have been to be able to come up with is a market.

left standing with.

I hadn't changed. My I.Q. hadn't dropped.

And that shows you that in this new belief space, you can find a solution.

Well the present value of that is going to be so plus 50 divided by 1.05, right that's the present value of the 50, because it's 1 year out.

In other words, for SuperRabbits, reputation has a real world value.

42 million in adjusted dollars. That's minus payload, of course.

So that is the value in 2 years.

This dollar would be 1.11 to the third.

1.02 squared is a smaller number than 1.05 squared.

loan, or all of the things that are about to happen?

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

What's expensive?

But I think this is quite clearly untrue.

Nye So, Stefanie, these are young people and so on, but are these experiments worthy of space?

Choice number three, the 20 today, the 20 now, well that's just worth 20.

But we're here for the good news, and the good news is that I think we can explore why this very real human effort, this very intense generation of value, is occurring.

You can either live in a world which is poorer, which people in general don't like.

I have factory tools worth 500,000, and then that cash will go away.

The 20 is now.

Well, we said let me do that in a different color.