Agenda. Discounting ReviewOverviewReview Financial Statement ConceptsDCF ModelingSummary/Example Additional Sources/Comments. Review of Discounting Cash Flows. FV of CF in year 0 to year n:CF*(1 r)^nPV of CF in year n to year 0:CF/(1 r)^nSample cash flow:Assume each period is a year, and discount rate (r) is 5%. What is the PV in year 0 of this flow?.
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