In finance, the discounted cash flow (or DCF) approach describes a method to value a project, company, or financial asset by means of the concepts of the time value of money. All future cash flows are predictable and discounted to give them a present value. The discount rate used is normally the appropriate cost of capital, and incorporates judgments of the uncertainty (riskiness) of the future cash flows.

Discounted cash flow analysis is broadly used in investment finance, real estate development, and corporate financial management.

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