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This approach is in finance a way of valuing a project, a company or an asset. Here we are going to be using it for projects. DCF does this by using what is known as the time value of money. All future cash flows are estimated. and discounted to give their present value. The sum of all future cash flows, both incoming and outgoing, is the net present value (NPV) and this is the first calculation we are going to look at. How this is. The financial value of the company or its assets. Here we have to use it for projects DCF does this by using what is known as the time value of money. Future cash flows are estimated and discounted to their present value. The sum of all future cash flows, both incoming and outgoing, a net present value (NPV) calculations and this is the first time we are going to look at.
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