Discounted Cash Flow Exercises

2 Pages Posted: 21 Oct 2008

See all articles by Sherwood C. Frey

Sherwood C. Frey

University of Virginia - Darden School of Business

Abstract

Students are asked in each of the situations presented, which alternative is better, assuming that they would put whatever money they receive in a secure investment that returns 10% annually.

Excerpt

UVA-QA-0290

DISCOUNTED CASH FLOW EXERCISES

1. In each of the following situations, which alternative is better, assuming that you would put whatever money you receive in a secure investment that returns 10% annually?

a. $ 100 now, or $ 130 three years from now

b. $ 250 now, or $ 350 five years from now

c. $ 500 two years from now, or $ 675 five years from now

. . .

Keywords: quantitative analysis, corporate financial strategy

Suggested Citation

Frey, Sherwood C., Discounted Cash Flow Exercises. Darden Case No. UVA-QA-0290. Available at SSRN: https://ssrn.com/abstract=1283358

Sherwood C. Frey (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/frey.htm

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