To work out future cash flow of an asset we calculate PV,
that is value today of cash flow we will get in future.
I see “present value” as a useful tool to help us
calculating the PV, but I can also see it has many variables that each person
making the calculations and the assumptions each person brings. I can see how
the end result could differ from person to person. Making this value one that
would need to be carefully checked when evaluating a company.
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