Question: Please explain why at time zero in the present value model under certainty, the present value of the firm's future cash flow is calculated as

Please explain why at time zero in the "present value model under certainty, the present value of the firm's future cash flow is calculated as follow

PA0= ($150/1.10)+($150/(1.10)2)

Also if firm generates end of year cash flow of $150 for two years, what is the cash flow @ year 2

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