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UNEQUAL CASH FLOWS AND FUTURE VALUE OF AN INVESTMENT
An investment is valued by estimating the future cash flows and discounting them to the present using a certain discount rate or required rate of return. The discount rate may be the cut-off rate set by the investor as based on the cost of borrowing or the cost of capital.
With the use of a forecast of future events that may affect an investment, ...
The expert determines how unequal cash flows affect future values of an investment.