The sum of the present values of an investment's expected future cash flows is known as the investment's intrinsic value.

Question

Quizplus · Accepted Answer

This is true. Intrinsic value is the concept of determining the true or inherent value of an investment based on the present value of its future cash flows. It is calculated by summing the discounted cash flows expected to be received from the investment over its useful life.

The Sum of the Present Values of an Investment's Expected