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"The value of the firm can be assumed to be the present value of future cash flows"

Why not "The value of the firm can be assumed to be the present value of the future cash flows"??

Because when I was writing this sentence I wrote it with "the" at the end too. So if I wrote it with "the" will my sentence be wrong? Elaborate this point please.

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  • I'd use by instead of to be. However not utterly sure.
    – Maulik V
    Jul 5, 2014 at 4:25

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The value of the firm can be assumed to be the present value of future cash flows

To me, this sentence makes no assumption. It states something that is true, whether there are future cash flows or not. It would be synonymous with:

The value of the firm can be assumed to be the present value of any future cash flows

The value of the firm can be assumed to be the present value of the future cash flows

On the other hand, this one seems to assume there will be future cash flows; that future cash flows have already been discussed and are being brought up again; or that there is some comparison to another type of cash flows* (past, for example). However, if there is no expectation or mention of cash flows occurring in the future, using the here is a bit awkward.

* - Thanks to @Tiercelet's comment about this.

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  • Agree. I would also consider that third "the" to be distinguishing future cash flows from some other cash flows already discussed. (It is a definite article so you'd think it would refer to some defined thing.)
    – Tiercelet
    Jul 5, 2014 at 6:31
  • @Tiercelet That's true; it could be comparing future cash flows to past cash flows. Good point.
    – Cat
    Jul 5, 2014 at 16:24

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