Future cash flows refer to the projected monetary gains or outflows that a business is expected to generate over a specific period. These cash flows are critical in determining a company's intrinsic value, as they represent the anticipated financial performance that drives the value of an investment. Understanding future cash flows allows investors to assess the potential profitability of a business, guiding their investment decisions and risk evaluations.
congrats on reading the definition of Future Cash Flows. now let's actually learn it.