Definition of discounted cash flow in English:

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discounted cash flow


A method of assessing investments taking into account the expected accumulation of interest.
Example sentences
  • A discounted cash flow calculation takes into account the value of earnings in future years.
  • After all, goodwill is a noncash item, and most companies value assets based on discounted cash flow.
  • The risk-free rate is also the basis for corporations and other investors evaluating projects or potential acquisition candidates using discounted cash flow analysis.

For editors and proofreaders

Syllabification: dis·count·ed cash flow

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