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Discounted cash flow
Evaluating Future Cash Flows: DCF in Capital Budgeting
December 11, 2023
Can you explain the concept of discounted cash flow (DCF) in capital budgeting?
DCF involves estimating the present value of future cash flows by discounting them using a predetermined rate. It aids in evaluating the attractiveness of an investment by considering the time value of money, providing insights into its potential profitability.
Tags : Discounted Cash Flow , Capital Budgeting , Investment Appraisal