Financial managers tend to prefer using the present value technique, because it's much easier to make decisions at time zero with present values than future values.
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It is always beneficial to calculate a mortgage payment for the future. Being aware of financial obligations, especially one as large a a mortgage payment, whether in the present or future, is a good step toward financial security.
In valuing a firm with no cash dividend, one approach is to assume that at some point in the future a cash dividend will be paid. You can then take the present value of future cash dividends. A second approach is to take the present value of future earnings as well as a future anticipated stock price. The discount rate applied to future earnings is generally higher than the discount rate applied to future dividends.
How is the value of any asset whose value is based on expected future cash flows determined?
Financial planning is a means of determining one's present and future financial needs and trying to budget and allocate financial resources to take care of both present and future needs. Financial planning helps one to set a goal for saving or building up the financial resources needed for the future. For any investor, knowledge of financial planning is a must.