4.1.1
 Cash flows (returns)
An investment's value depends on the cash flow (or
cash flows) that you anticipate it will provide over
the period of ownership. To have value, the investment
need not provide constant returns. Intermittent cash
flows, a single cash payment and even declining cash
flows have value. (More 4.1.1>>)
4.1.2  Required return (discount
rate)
An asset's riskiness affects its value. The greater
the uncertainty of cash flows, the lower their value.
Risk can be factored into the valuation process by either
increasing the discount rate or formalizing it in a
model (such as the Capital Asset Pricing Model) that
relates risk (ß) and returns. (More
4.1.2>>)
4.1.3  Discounted cash flow (DCF)
model
The value of an asset is the present value of all
expected future cash flows  that is, cash flows discounted
to present value. (More 4.1.3>>)
