discounted cash flow analysis
- discounted cash flow analysis
- DCF analysis
An investment appraisal method that assesses the *net present value of future incremental *cash flows that would arise from the implementation of a decision. In acknowledgment of the *time value of money, future cash flows are *discounted to *present values by the use of an appropriate *cost of capital rate. Discounted cash flow (DCF) analysis is frequently used to assess *capital expenditure proposals. See also the *internal rate of return.
Auditor's dictionary.
2014.
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