You have been given an investment opportunity for your business and you are wondering if it is worth the money you will have to spend for it. How do you figure that out? By calculating the present value of a single cash flow. Expecting to receive a cash flow in the future is like winning the lottery - in some ways. Except you have to pay something for it. Calculating the present value of that money tells you how much you should pay for that opportunity.
Read all about it and learn to calculate it in the article!