In the financial world, investment selection is done in many ways. However, most world$-$class investors like Warren Buffett employ present value concepts to determine investment valuation. Thus, in personal finance as well as corporate finance, proper investment selection and corporate valuation must use time value of money concepts, especially present value.

How are present value concepts, namely discounted cash flow, used by Warren Buffett and other investors to determine a firm's value? How would this information apply to you personally even if you are not involved in the financial function of a firm? Why is this concept a primary crux of financial markets?