Discounted Cash Flow Technique and Internal Rate of Return
This learning unit will teach you how to calculate the present value of money receivable in the future, use SPPWF and USPWF tables to calculate the PV of cost of returns, calculate the most economical decision, calculate the net present value (NPV), and calculate the internal rate of return (IRR).
Here are some of the questions that will be answered in this learning unit:
- What is the time value of money?
- What is a discount factor?
- What are the advantages of using DCFT?
- When can DCFT be applied?
- How can the future value of money be calculated using compound interest?
- How can present value (PV) be calculated by reversing the compound interest formulae?
- How can discount factors be used?
To learn more about discounted cash flow technique and internal rate of return, please read the following articles: