How do you find the present value of cash flows? I am confused on how to do so. I have tables below containing numbers that I would like to use to find the present value of cashflows.

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Exhibit 3b Five-year Forecast of Broadway's Income and Cash Flow, 2015-2019 ($ millions)* 2015 2016 2017 2018 2019 Net sales 168.4 175.1 182.1 189.4 197.0 Operating profit 6.7 7.0 7.3 7.6 7.9 Interest expense 0.4 0.4 0.4 0.4 0.4 Net income 4.1 4.3 4.5 4.7 4.9 Depreciation and amortization 3.1 3.3 3.5 3.7 3.9 Change in net working capital 0.4 0.4 0.4 0.4 0.4 Capital expenditure 4.2 4.4 4.6 4.7 4.9 Total FCF 2.8 3.1 3.3 3.5 3.7 *Numbers in the exhibits are based on the assumption that Broadway does not acquire Landmark. Exhibit 3b Five-year Forecast of Broadway's Income and Cash Flow, 2015-2019 ($ millions)* 2015 2016 2017 2018 2019 Net sales 168.4 175.1 182.1 189.4 197.0 Operating profit 6.7 7.0 7.3 7.6 7.9 Interest expense 0.4 0.4 0.4 0.4 0.4 Net income 4.1 4.3 4.5 4.7 4.9 Depreciation and amortization 3.1 3.3 3.5 3.7 3.9 Change in net working capital 0.4 0.4 0.4 0.4 0.4 Capital expenditure 4.2 4.4 4.6 4.7 4.9 Total FCF 2.8 3.1 3.3 3.5 3.7 *Numbers in the exhibits are based on the assumption that Broadway does not acquire Landmark.

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Answer To find the present value of cash flows you can use the discounted cash flow DCF method The D... View the full answer