Add the discounted cash flows from Step 3 and the terminal value from Step 4 to get the total present value of the investment or business. Importance of Discounted Cash Flow ...

Cash flow is a measurement of the money moving in and out of a business, and it helps to determine financial health.

Free cash flow yield measures a company's cash generation relative to its market value, helping investors assess financial health and potential.

After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage ...