Question
Think of the present value (PV) equation for a firm. When dealing with firms, the equations Cash term is called free cash flow, and the
Think of the present value (PV) equation for a firm. When dealing with firms, the equations Cash term is called free cash flow, and the required return is called the weighted average cost of capital (WACC). If the firm is Amazon, what are the tangible ways to increase its present value? The terms in the PV equation are listed below. Provide one example for each term. For example: to increase free cash flow, Amazon could focus on increasing sales with an efficient drone delivery system that provides same day delivery at no extra cost.
Free Cash flow:
WACC:
Time:
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