5 Discounted Cash Flow Valuation英文学习资料.pdfVIP

Discounted Cash Flow Valuation Chapter Outline • The One-Period Case • The Multiperiod Case • Compounding Periods • Simplifications Discounted Cash Flow Valuation • A dollar today is more valuable than a dollar to be received in the future • Why? –A dollar today is more valuable because: • It can be invested to make more dollars • It can be immediately consumed • There is no doubt about its receipt An Important Corollary • If you know your required rate of return and the length of time before cash is harv