0
Means just use the amount given, and not take into account of any uncertainty, discount rate and so forth.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is undiscounted cash flows?
Undiscounted cash flows is a term commonly used in real estate sector. This does not take into consideration the value of time and in the future the value of a tangible asset will depreciate.
Is valuation of a financial asset based on concept of determining the present value of future cash flows?
How is the value of any asset whose value is based on expected future cash flows determined?
Tell me something about valuation of a bond?
Bond valuation has one fundamental principle. This principle is that the bond has a value that is equal to the present value of the expected cash flow that will occur in the future.
What is the meaning of expected net present value?
It is the expected value of all cash flows of a project brought back to the present value, by discounting it by the cost of capital involved in the project.
What approaches can be taken in valuing a firm's stock when there is no cash dividen payment?
In valuing a firm with no cash dividend, one approach is to assume that at some point in the future a cash dividend will be paid. You can then take the present value of future cash dividends. A second approach is to take the present value of future earnings as well as a future anticipated stock price. The discount rate applied to future earnings is generally higher than the discount rate applied to future dividends.
What is undiscounted cash flows?
Undiscounted cash flows is a term commonly used in real estate sector. This does not take into consideration the value of time and in the future the value of a tangible asset will depreciate.
Why is impairment tested using undiscounted future cash flows rather than the present value of future cash flows?
Original cashlow to match principal
The present value of the expected future cash flows of an asset represents the asset's?
intrinsic value
Is valuation of a financial asset based on concept of determining the present value of future cash flows?
How is the value of any asset whose value is based on expected future cash flows determined?
Tell me something about valuation of a bond?
Bond valuation has one fundamental principle. This principle is that the bond has a value that is equal to the present value of the expected cash flow that will occur in the future.
1000 is expected to be received 10 years from now The present value of this 1000 future cash flow is what?
It depends on what discount rate you're using.
The present value of future cash flows has what relationship to interest rate?
The present value of future cash flows is inversely related to the interest rate.
What is the meaning of expected net present value?
It is the expected value of all cash flows of a project brought back to the present value, by discounting it by the cost of capital involved in the project.
How do you compute present and future value of a cash flow stream?
Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n
How do you calculate Exit Yield?
Exit yield is used to value at the end of a cash-flow. It gives a capital value that is expected to be an asset after cash-flow ends.
What is shareholder wealth maximization model?
Shareholder Wealth Maximization Model, unlike simple profit-maximization incorporates the time dimension and risk. The Shareholder-Wealth Maximization model (SWM) goal states that the objective of a firms management should be to maximize the present value of the expected future cash flows to equity owners (shareholders).Consider cash flows to be the same as profits. Hence, the value of a firms stock is equal to the present value of all expected future profits, discounted at the the shareholders required rate of return.
What is Shareholder wealth maximization?
Shareholder Wealth Maximization Model, unlike simple profit-maximization incorporates the time dimension and risk. The Shareholder-Wealth Maximization model (SWM) goal states that the objective of a firms management should be to maximize the present value of the expected future cash flows to equity owners (shareholders).Consider cash flows to be the same as profits. Hence, the value of a firms stock is equal to the present value of all expected future profits, discounted at the the shareholders required rate of return.
