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Business, 06.08.2019 22:30 justachelseafan

2. explain why money has a time value. explain the present value of a series of future cash flows, such as a business or a power plant and provide the equation for it. what is the present value of the following cash stream: a consulting firm that is for sale has an annual operating cash flow of $2,000,000 assuming no future growth in cash flow, what is the value of this business at a 50% cost of capital? what would be the maximum price that you would pay for that firm as an acquisition with no growth? what would be the valuation if you assumed that the sellers put into place strategies that would generate a 10% growth rate in cash flow?

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