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A time value of money calculation is one which solves for one of several variables in a financial problem. In a typical case, the variables might be: a balance (the real or nominal value of a debt or a financial asset in terms of monetary units); a periodic rate of interest; the number of periods; and a series of cash flows (in the case of a debt, these are payments against principal and interest; in the case of a financial asset, these are contributions to or withdrawals from the balan -- Wikipedia

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A loss instead of a profit is described as a negative return, assuming the amount invested is greater than zero.
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Discounted vs. Undiscounted Cash Flows in Financial Analysis

In the world of finance, two powerful methods are employed to assess the viability of investments and make decisions: Discounted Cash Flow (DCF) and Undiscounted Cash Flow. These techniques transcend mere accounting stan
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See also Nominal accounts and Real accounts
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