<p>NPV or Net Present Value was formalized and popularized by Irving Fisher in his 1907 theory "The Rate of Interest."</p>

<p>This <a href="https://faculty.fuqua.duke.edu/~charvey/Research/Thesis/CHD1.pdf" rel="nofollow noreferrer">Duke Fuqua article</a> explains some of the background on how he came to this theory.</p>

CC BY-SA 3.0
2017-12-01T19:32:14.833Z
2017-12-01T19:32:14.833Z
Bryan Turriff
<p>I guess the method might have been around since the first bank was established back in the 14th century if not even centuries before. That known first bank must have used the method prior to making lending decisions. The Wikipedia article <a href="https://en.wikipedia.org/wiki/History_of_banking" rel="nofollow noreferrer">here</a> can be useful to figure out when the method might have possibly been used, but the genius behind its invention may not be easily identified. </p>

CC BY-SA 3.0
2017-12-02T00:32:40.610Z
2017-12-02T00:32:40.610Z
london
<p>It has been argued that the concept of present value was implicit in <em>Liber Abaci</em> (1202) by Leonardo of Pisa (also known as Fibonacci).  <em><a href="http://depot.som.yale.edu/icf/papers/fileuploads/2591/original/03-28.pdf" rel="nofollow noreferrer">This paper</a></em> by Goetzmann makes this claim in its abstract and introduction, and presents (pp 26-7) an example from <em>Liber Abaci</em> of what appears to be present value analysis. </p>

CC BY-SA 3.0
2017-12-02T22:13:08.573Z
2017-12-02T22:13:08.573Z
Adam Bailey
<p>I cannot find anything on this online. The wikipedia article is purely technical, except by a mention that such system was used in England in early 16th century.</p>

<p>Do you know who was the first to come up with this idea and technique?</p>

CC BY-SA 3.0
2017-12-01T09:33:43.360Z
There is some history of "net present value" at http://www.accountingin.com/accounting-historians-journal/volume-9-number-1/an-historical-perspective-of-net-present-value-and-equivalent-annual-cost/, although it doesn't go back to the 16th century.
Adam Bailey
<finance><history><definition>
Who created the concept of "present value"?
chatGPT
# Who created the concept of "present value"?

(Asked by: username_0 on 2017-11-30)

I cannot find anything on this online. The wikipedia article is purely technical, except by a mention that such system was used in England in early 16th century.

Do you know who was the first to come up with this idea and technique?

**Tags:** finance, history, definition
> **Comments:**
> **username_1**: There is some history of "net present value" at http://www.accountingin.com/accounting-historians-journal/volume-9-number-1/an-historical-perspective-of-net-present-value-and-equivalent-annual-cost/, although it doesn't go back to the 16th century.  

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## 3 answers

### Answer by username_1 on 2017-12-02. Score: 4 | Accepted answer

It has been argued that the concept of present value was implicit in *Liber Abaci* (1202) by Leonardo of Pisa (also known as Fibonacci). *[This paper](http://depot.som.yale.edu/icf/papers/fileuploads/2591/original/03-28.pdf)* by Goetzmann makes this claim in its abstract and introduction, and presents (pp 26-7) an example from *Liber Abaci* of what appears to be present value analysis.


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### Answer by username_2 on 2017-12-01. Score: 1

NPV or Net Present Value was formalized and popularized by Irving Fisher in his 1907 theory "The Rate of Interest."

This [Duke Fuqua article](https://faculty.fuqua.duke.edu/~charvey/Research/Thesis/CHD1.pdf) explains some of the background on how he came to this theory.


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### Answer by username_3 on 2017-12-02. Score: 0

I guess the method might have been around since the first bank was established back in the 14th century if not even centuries before. That known first bank must have used the method prior to making lending decisions. The Wikipedia article [here](https://en.wikipedia.org/wiki/History_of_banking) can be useful to figure out when the method might have possibly been used, but the genius behind its invention may not be easily identified.


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