Discounted cash flow techniques

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Discounted cash flow techniques are capital budgeting techniques that take into account both the time value of money and the estimated net cash flow from an investment. These techniques take into account the fact that cash flows that occur early in the life of an investment will be worth more than those that occur later. The primary discounted cash flow technique is called net present value. Describe this method in 75 words. How is the NPV calculated and what is the decision rule?

Reference no: EM13934426

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