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The Value of Any Asset Is the Present Value of the Cash

question 92

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The value of any asset is the present value of the cash flows the asset is expected to provide.The cash flows a business is able to provide to its investors is its free cash flow.This is the reason that FCF is so important in finance.


Definitions:

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences, such as procedural memory involved in riding a bike.

Conscious Awareness

The state of being awake and aware of one's surroundings, thoughts, feelings, and sensations.

Anterograde Amnesia

The inability to form new memories following an incident or onset of a disease, while memories from before the event remain intact.

Working Memory

A cognitive network with a bounded potential, charged with keeping information temporarily for processing needs.

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