Discounted Cash Flow (DCF) | Finance | Chegg Tutors

Discounted cash flow (DCF) is a means of determining the present value of future cash flows by using the concept of time value of money. According to time value of money, money now (due to its earning potential) is worth more than money in the future. The further into the future cash is to be received, the less it is worth today. There are two standard financial techniques used in discounted cash flow analysis: net present value (NPV) and internal rate of return (IRR). While NPV calculates the total value o