What is the intuition behind the fact that the present value of a stream of cash flows

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What is the intuition behind the fact that the present value of a stream of cash flows is just the sum of the present values of each individual cash flow?

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Fundamentals Of Corporate Finance

ISBN: 9780133507676

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Oct 25, 2016 11:03 AM

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What is the intuition behind the fact that the present value of a stream of cash flows

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The intuition comes from the Law of One Price If the price or pr...View the full answer

Fundamentals Of Corporate Finance

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