资产评估理论基础(2)(17)

What Is a Firm Worth?

Suppose you are in the business of trying to determine the value of small companies.

Let's consider the example of a firm that is expected to generate net cash flows 5000 in the first year and 2000 for each of next five years. The firm can be sold for 10000 seven years from now. The owner would like to be able to make 10 percent on their investment in the firm.

The present value of the firm

End of Year

1

2

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5

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7Net Cash FlowPV Factor 10%0.910.830.750.680.620.560.51

Present Value of FirmPV