Calculating present value centers on the notion that a dollar
today is worth more than a dollar tomorrow, a concept known
as the time value of money.
This is due to the fact that a dollar earns money through
investments (capital appreciation) and/or interest (e.g., in a
money market account).
The present value calculation is performed by multiplying the
FCF for each year in the projection period and the terminal
value by its respective discount factor.