V = [CF, X (PVIF,,)] + [CF, X (PVIF)] + ... + [CF x (PVIF)] (6.5) n We can use Equation 6.4 to determine the value of any asset. Elizabeth Ntondini uses Equation 6.4 to calculate the value of each asset (using present value interest factors from Table A-2), as shown in Table 6.6 on the next page. Mitchells Plain Enterprises equity has a value of R25,000, the oil well's value is R92,620 and the original painting has a value of R422,450. As the investment in Mitchells Plain Enterprises is considered less risky than the painting, a lower required return of 12% is used. The investment in the oil well is judged to be more risky and so a higher required return of 20% is used. Note that regardless of the pattern of the expected cash flow from an asset, the basic valuation equation can be used to determine its value.