Future value and GMT: Difference between pages

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(FV).  
''Tax - profit shifting.''


If we invest money today (and roll up all the expected income) the future value receivable is the expected total value of our investment at its maturity.
Abbreviation for a Global Minimum corporate Tax rate, designed to reduce, or eliminate, the benefits to multinational corporations of profit shifting.


If we ''borrow'' money today (and roll up all the interest payable) the future value payable is the total principal and interest repayable to the lender at the final maturity of the borrowing.


== See also ==
* [[Corporation Tax]]
* [[Global minimum corporate tax rate]]
* [[Multinational corporation/company]]
* [[Profit shifting]]
* [[Tax avoidance]]
* [[Tax evasion]]
* [[Tax rate]]


For example if $100m is held today, and the rate of return on capital (r) is 10% per year, the Future value is:
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:The_business_context]]
FV = $100m x 1.1<sup>1</sup> = $110m
 
 
And more generally:
 
FV = Present value x Compounding Factor (CF)
 
 
Where:
 
CF = (1+r)<sup>n</sup>
 
r = return on capital or cost of capital per period; and
 
n = number of periods
 
 
== See also ==
* [[Compounding factor]]
* [[Present value]]
* [[Terminal value]]
* [[Time value of money]]

Latest revision as of 15:59, 15 December 2022

Tax - profit shifting.

Abbreviation for a Global Minimum corporate Tax rate, designed to reduce, or eliminate, the benefits to multinational corporations of profit shifting.


See also

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