# 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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