Computer Science, asked by Striff, 19 days ago

DFC to find the difference of 2 number​

Answers

Answered by Itzzhoneycomb
0

There is a difference. Both Discounted Cash Flows (DCF) and Net Present Value (NPV) are used to value a business or project, and are actually related to each other but are not the same thing.

DCF is the sum of all future cash flows of a given project or business or whatever, discounted to present day (because money in the future is worth less than it is today...e.g. $100 a year from now is only worth $95). Basically this tells me, "So this business is generating $$ per year for 10 years, what is all of that $$ cash flow, over 10 years, worth to me TODAY?"

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