question archive what is the essence of the discounted cash flow methods?
what is the essence of the discounted cash flow methods?
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what is the essence of the discounted cash flow methods?
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Answer:
the discounted cash-flow method calculates the expected cash inflows and outflows of a project as if they occurred at a single point in time so that they can be aggregated (added, subtracted, etc.) in an appropriate way. This enables comparison with cash flows from other projects that might occur over different time periods.
