The present value of the expected future cash flows of an asset represents the asset's

Question

Quizplus · Accepted Answer

The present value of the expected future cash flows of an asset represents the asset's intrinsic value, which is the true value of an asset based on its ability to generate cash flows in the future. The liquidation value is the amount that could be received if the asset were sold immediately, the book value is the value of an asset as recorded in a company's accounting records, and the par value is the face value of a bond or stock.

The Present Value of the Expected Future Cash Flows of an Asset