Walgreens also anticipates a present value cash flow
benefit of approximately $80 million associated with the assumption of drugstore.
In light of the fact that the payment of closing costs confers the same present value cash flow
benefit on a purchaser as the payment of loan discount points, closing costs should be included in the definition of "points" to make cash equivalency adjustments.
Can they get a net present value cash flow
advantage by pre-funding?
As any MBA student knows, investment decisions are designed to achieve a present value cash flow
return in excess of the business' cost of capital.
The model calculates the expected value of (or Cywealth' derived from) a legal claim as the probability-weighted combination of net present value cash flows
from both trial and settlement.