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Present Value: A Note on Personal Applic...

Haskins, Mark E.

Technical Note

Present Value: A Note on Personal Applications

Haskins, Mark E.

C-2314 | Published August 3, 2010 | 17 pages Technical Note

Collection: Darden School of Business

Product Details

This note explores discounted cash flows as a core technique for valuing a business, allocating scarce resources, and comparing alternative investments. Suitable for MBA and undergraduate business students, this note builds on students' basic understanding of discounting future cash flows with simple examples to which students can easily relate. Whether the discounted cash flow process used to derive a net present value or an internal rate of return metric, it is powerful, rational, and informative.

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