Question
Calculate the present value of a series of future cash flows for Facebook, Inc. Item Amount ($) Annual Cash Flows 100,000 Discount Rate 7% Time
Calculate the present value of a series of future cash flows for Facebook, Inc.
Item | Amount ($) |
Annual Cash Flows | 100,000 |
Discount Rate | 7% |
Time Period | 5 years |
Question:
Using the given data, calculate the present value of the series of future cash flows for Facebook, Inc. Show your calculations and explain the importance of discounting future cash flows in investment decisions.
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
