Example 1 1096 7 8 9 0 -100 t CF DCF DCF 1 2 3 30 30 30 27.27273 24.79339 22.53944 4 30 20.4904 5 30 18.62764 6 30 16.93422 30 15.39474 30 13.99522 30 12.72293 10 30 11.5663 84.33701 Example 2 10% t 0 2 4 un 6 7 -100 CF DCF DCF 1 20 18.18182 20 16.52893 3 20 15.0263 20 13.66027 20 12.41843 20 11.28948 20 10.26316 8 20 9.330148 9 10 20 20 8.481952 7.710866 22.89134 Examples 1 and 2 illustrate that valuations can drop significantly even in a fully functional market. Examples 1 and 2 illustrate that valuations can drop significantly even if future expected cash flows do not change, Examples 1 and 2 illustrate that valuations can drop significantly if future expected cash flows increase monotonically, Examples 1 and 2 illustrate that valuations can drop significantly if future expected cash flows decrease monotonically