Define discounted cash flow
Briefly describe the term discounted cash flow?
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Discounted cash flow : - in finance it is the analysis of a technique that talks about the value of the project, company along with the asset that is being employed using the time value of money. In this all evaluation has been taken and discounted for the present value as it shows both outgoing and incoming. This kind is employed for investment of the finance and employed for financial management.
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Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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