The ____ of any asset is equal to the present value of its expected future cash flows discounted ...
The value of any asset is the present value of the cash flows the asset is expected to provide. The cash flows a business is able to provide to its investors is its free cash flow. This is the reason that FCF is so important in finance. a. True b. False
The stock price is equal to the present value of all future cash flows from the stock discounted at ________________________. In other words, what do we call the rate at which we discount the future dividends?
The measurement of an asset's value based on the discounted future cash flows relating to the asset is present value. future value. historical value. net realizable value.
Which of the following discounts future cash flows to their present value at the expected rate of return, and compares that to the initial investment? A.Internal rate of return (IRR) method B.Discounted cash flow model C.Net present value (NPV) D.Future value method
Chapter 4 MindTap To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (1 + r)". What is the value today of a $12,000 cash flow expected to be received eight years from now based on an annual interest rate of 6%? $6,023 O $7,529 O $19,126 O $11,670 Your broker called earlier today and offered you the opportunity to invest in a security....
Which of the following is the discount rate that makes the present value of the estimated cash flows equal to the initial cost of the investment? Modified internal rate of return Internal rate of return Discounted payback period Payback period Net present value
The computation of the current value of an asset using the present value of future cash flows method does not include the A. Productive life of the asset. B. Applicable interest rate. C. Future amounts of cash receipts or cash savings. D. Cost of alternate uses of funds given up.
A. The excess of the present value of future cash flows over the initial investment outlay for a project is the: 1. Internal rate of return (IRR) of the project 2. Modified internal rate of return (MIRR) on the project 3. Book (accounting) rate of return for the project 4. Net present value (NPV) of the project 5. Modified internal rate of return (MIRR) of the project B. Items that have cash flow effects during the operating phase of an...
a. What is the present value of the following set of cash flows, discounted at 10.8 % per year? a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year - CF $8 $19 $19 $30 b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 $30 $ 19 9 8 c. Each set contains the same cash flows ($8,...
what is the Present Value of an asset that pays the following cash flows, if you can invest them at a rate of return of 5%? Time Period Cash Flow 0 2 4 75 75 75 75 75 Note: this is an 'ordinary annuity', it is the default assumption for both Excel and your financial calculator. a) Identify the assumptions given in this problem Rate of Return # of years Annual Payment Future Value b) Solve this problem using the...