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Discounted Cash Flows
(redirected from Discount Cash Flows)

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Discounted Cash Flows
Future, expected cash flows from a project or venture that have been adjusted to arrive at their present value. One uses the calculation of discounted cash flows to determine whether a particular investment is likely to be profitable.


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Interest rates used to discount cash flows should reflect assumptions consistent with those inherent in the estimated cash flows so the assumptions are not double counted or ignored.
 
 
 
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