Discounted cash flow

 

 

 

Discounted cash flow

 

Glossary of business

 

Definition of discounted cash flow

 

Discounted cash flow is an investment appraisal technique that helps firms assess whether a particular investment is worthwhile. DCF takes account of when the revenues from the investment take place. This is important because future revenues will have a lower current value and so DCF 'discounts' future revenues using a 'discount rate' to see what they are worth now and therefore whether the investment project is worthwhile.

 

Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

link: http://business-tes.wikispaces.com/

Author : not indicated on the source document of the above text

 

Terminology about business

 

Job world

 

 

Definition and meaning of discounted cash flow

 

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Meaning of discounted cash flow

 

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