Question
Calculate the present value of a series of future cash flows for Berkshire Hathaway Inc. Item Amount ($) Annual Cash Flows 70,000 Discount Rate 8%
Calculate the present value of a series of future cash flows for Berkshire Hathaway Inc.
Item | Amount ($) |
Annual Cash Flows | 70,000 |
Discount Rate | 8% |
Time Period | 5 years |
Question:
Using the given data, calculate the present value of the series of future cash flows for Berkshire Hathaway Inc. Show your calculations and explain the importance of discounting future cash flows in investment decisions.
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Payroll Accounting 2016
Authors: Bernard J. Bieg, Judith Toland
26th edition
978-1305665910, 1305665910, 1337072648, 978-1337072649
