[Answer] What is a reason one discounts future cash flows as part of the absolute valuation process?

Answer: Enterprise value = market cap - cash + debt

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What is a reason one discounts future cash flows as part of the absolute valuation process? what is a reason one discounts future cash flows as part of the absolute valuation process a) future profits are uncertain b)deflation makes future cash flows worthless c ) investors prefer future payments to payments today Consider the formula GDP = C+I+G+ (X-M ). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year the dollar growth in imports is greater than the dollar growth in domestic consumption . What is a reason one discounts future cash flows as part of the absolute valuation process ? Investors prefer cash flows today to cash flows in the future . How is enterprise value calculated? Enterprise Value = market cap - cash + debt. The cash flow from equities can continu...

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