In finance, discounted cash flow (DCF) analysis is a common technique of placing value on a project or company. All of the future cash flows are projected and discounted by using cost of capital to determine their present values (PVs). Adding up all future cash flows, both incoming and outgoing, provides the net present value (NPV).
Respond to the following in a minimum of 250 words for each:
- Give an example of a situation where a building contractor may want to use the discounted cash flow (DCF) analysis method. (minimum 250 words)
- Discuss a situation where a method to determine a project’s valuation, other than discounted cash flow (DCF) analysis, would be favorable. (minimum 250 words)
please make sure you use your own words for answering the discussion questions.
NOTE: Instructor will find out if you use someone else’s words even if you re-word them.
