For example, is you were to plant an orange tree today you make expect to get $50 worth of oranges in the future. Since you have to wait for the oranges (and their $50 value), the value in today's dollars will be less. If someone is patient and the time they have to wait for the oranges is small, then their willingness to accept amount (the present value) may be $45 or $40. If the person is impatient or has to wait a long period of time, then the willingness to accept amount (the present value) may be much lower approaching $5 or so.
The present value of a future payoff should never be larger than the face value of the payoff. This is a result of the idea of "discounting" which means that people tend to prefer having resources now rather than in the future. For example, imagine you were given the choice between:
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