Assume a company creates cash flows of $100,000 one year from now, $150,000 two years from now, $200,000 three years from now, and four years from now will be sold for $1,000,000. Assuming you want to earn a 10% return, what is the value of that company today, that you would pay to buy it? 

Answer rating: 100% (QA)

To calculate the present value of the companys future cash flows we can use the formula for ... View the full answer