Hey,
Was wondering if someone could tell me why FCFF(0)=5 is not included?
I get 275.35.
Hey,
Was wondering if someone could tell me why FCFF(0)=5 is not included?
I get 275.35.
You are discounting future benefits that you will receive by buying this financial instrument, basically any CF at time 0 will not be included , because you are not receiving it , if you invested your money now and bought this share, then this is the value of the future CF that you will obtain.
I calculated and got an NPV of 270