Calculate the current value of net cash flows for ten years

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Even Incorporated has been operating a printing and design business for 3 years and has issued capital of 500,000 $1 fully paid shares. The printing business operates in a constantly changing environment due to new competitors and technology. Currently the business is generating $500,000 in net cash flows per annum and has a number of investment opportunities available to them. Assume that the current net cash flow will remain the same for the next ten years.

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Problem 1: Calculate the current value of net cash flows for 10 years using a discount rate of 14%.

Reference no: EM132718109

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