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How does this help determine what we track in accounting

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Question - The reason is simple, these three points are the basis for determining the present value of the company. The formula is PV=CF/(1+i)^n where PV is the present value, CF=net cash inflows, n=timing, and i (interest rate) is based on uncertainty. As managers if we can increase cash flows, get the money faster, or lower the uncertainty, the value of the company goes up.

How does this help determine what we track in accounting?

Reference no: EM132411987

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