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What is the difference between Discounted cash flow method and Net Present value method?

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Question added by mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice
Date Posted: 2014/01/31
ANGSHUMAN DAS
by ANGSHUMAN DAS , General Manager SCM & Ops , King Global Fz LLC

Discounted Cash flow is where the Deffered Bill is settled now for immediate payment , with a compromise on the NET PRESENT VALUE of the bill .

Asad zaman
by Asad zaman , Audit/Finance , Rafaqat Baber and co

NPV is dicounted cash flow method for evaluation of project.

Ghada Mohammad
by Ghada Mohammad , Research Analyst , Moore Stephens

NPV used to calc pv of cash flows from a project to choose but the DCF is used to determine the fair value of equity

Discounted cash flow is a cash flow summary adjusted so as to reflect the time value of money.While NPV is what the future cash worth today.

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