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

question 92

True/False

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.

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Definitions:

Soviet Union

A former federal socialist state in Eastern Europe and Northern Asia, existing from 1922 to 1991, known officially as the Union of Soviet Socialist Republics (USSR).

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A social movement opposing the norms, values, and practices of the mainstream culture, often associated with the 1960s and early 1970s.

Consumer Marketplace

The dynamic environment where the buying and selling of goods and services between consumers and businesses takes place.

Individual Choice

The personal freedom of making decisions that affect one's life without undue influence or coercion.