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Rating:In finance, discounted cash flow analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values the sum of all future cash flows, both incoming and outgoing, is the net present value, which is taken as the value or price of the cash flows in question.
read morePresent value, also known as present discounted value, is the value on a given date of a payment or series of payments made at other times. If the payments are in the future, they are discounted to reflect the time value of money and other factors such as investment risk. If they are in the past, their value is correspondingly enhanced to reflect that those payments have been earning interest in the intervening time.
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