A firm’s present value (PV) is the value of all its future cash flows discounted to the present. Future cash flows are discounted because a dollar received tomorrow is worth less than a dollar received today. The PV calculation measures …
A firm’s present value (PV) is the value of all its future cash flows discounted to the present. Future cash flows are discounted because a dollar received tomorrow is worth less than a dollar received today. The PV calculation measures …
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