Answer:
Here's the answer
Explanation:
To discount cash flows, investors typically use the discounted cash flow (DCF) formula, which is:
\[ PV = \dfrac{CF}{(1 + r)^n} \]
Where:
- \( PV \) is the present value of the cash flow
- \( CF \) is the cash flow amount
- \( r \) is the discount rate (or the rate of return required)
- \( n \) is the number of periods in the future the cash flow occurs
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