What is a Discounted Cash Flow - DCF?

Creating a business case and an investment appraisal is essential at the start of your project. And many organizations specify that the investment appraisal uses a DCF (Discounted Cash Flow) methodology.

So, in this video, I answer the question: 'What is a Discounted Cash Flow, or DCF?'

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PM Formulas: Understanding the Math of Project Management

Great Big Guide to the Project Business Case

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[abdullahghoneim]

🎯 Key points for quick navigation:

00:23 *🕰️ A cash flow records cash movements in and out of a project or business over time.*
01:44 *📉 Cash flows have different values over time due to inflation and investment potential.*
03:00 *💰 Discounted cash flow adjusts future cash values to their present worth using a discount rate.*
04:24 *📊 Net present value (NPV) sums up all present values to assess project profitability.*
04:41 *🔄 Internal rate of return (IRR) measures the project's profitability against alternative investments.*

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[Prajwaaalll]

Thank you so much Sir, You explained the concept phenomenally .

[MuhammadAsem]

It is really a great explanation, detailed and to the point.

[aown]

Perfect explanation..

Can you please explain PC-1, PC-2 and how many types of PC exists..?