Discounted cash flow

In the field of finance a discounted cash flow (DCF) is the product of:

• the anticipated nominal magnitude and sign of a cash flow, and
• the accumulated discount over the amount of the amount of time remaining until the anticipated time of the cash flow, at a rate of discount[?] equivalent to the opportunity cost of capital[?].

Discounted cash flows are generally considered to be additive[?].

Future cash flows are discounted in order to express their present values, in order to properly determine the value of a company or project under consideration (see capital budgeting[?]) as a whole.

DCF methods include:

• Weight adjusted cost of capital[?]
• Adjusted present value[?]
• Flow to equity[?]

See also: Economic value added