99. How do we measure the future value of a good or service? Be able to give an example related to this course.

The future value of a good or service is typically measured using a discounted cash flow model. The cashflows are discounted at a rate to account for risk and to reflect the time value of money. For example, a company could use discounted cash flow analysis to determine how much to invest in a new technology. The cash flows associated with the technology could be estimated and then discounted to present values. Finally, the sum of all the present values of cashflows could be calculated to represent the overall value of the technology and a decision made as to whether or not to invest.