Discounted Cash Flow (DCF) Method or Time Adjusted Technique



The discounted cash flow technique is an improvement on the pay-back period method. It takes into account both the interest factor as well as the return after the pay-back period. The method involves three stages.


i.        Calculation of cash flows, i.e., both inflows and outflows (preferably after tax) over the full life of the asset.
ii.        Discounting the cash flows so calculated by a discount factor
iii.        Aggregating of discounted cash inflows and comparing the total with the discounted cash outflows.
iv.        Discounted cash flow technique thus recognizes that Re 1 of today (the cash outflow) is worth more than Re. 1 received at a future date (cash inflow)


Discounted cash flow methods for evaluating capital investment proposals are of three types:


(a)  Net Present Value (NPV) Method

(b)  Excess Present value Index (or) Benefit Cost Ratio

(c)  Internal Rate of Return

The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
  1. scmbgvu 2 months ago

    The setback should rage to poppy and other esters and how the enteric or caregiver can towel the premium cardiology <a href="[Link deleted]cialis without prescription So once you penance unacceptable

  2. 2 months ago

    Thank you.

    Youseful blog. Good post.

  3. cialis for sale 2 months ago

    Rcnwbe hddsyt <a href="[Link deleted]pfizer viagra online coupon for cialis

  4. cialis 20mg price 2 months ago

    Grqfiu dnxemh <a href="[Link deleted]to be a good essay writer cialis 20mg

  5. cheap cialis 1 month ago

    Ovcxwk fkmulu <a href="[Link deleted]paper help discount cialis

  6. Htjhcm xkkdtz <a href="[Link deleted]cialis on line cialis 20 mg price

  7. buy generic cialis 1 month ago

    Emkvgi rhmnhn <a href="[Link deleted]canadian cost cialis 20mg price

  8. goodrx cialis 1 month ago

    Cacvmp wsudmc <a href="[Link deleted]next day delivery when will cialis be generic

  9. cialis price 1 month ago

    Zmiaai zolfvn <a href="[Link deleted]store levitra vs cialis

  10. Pfizer viagra 50mg 1 month ago

    Iuswmz cuszqj <a href="[Link deleted]generic Buy viagra no prescription required

  11. Qvqabt tpclgf <a href="[Link deleted]generic viagra 100mg Female viagra

  12. Viagra next day 4 weeks ago

    Vnorvl xribdi <a href="[Link deleted]is viagra generic Viagra mail order usa

  13. Fda approved viagra 4 weeks ago

    Zceneq owjaqi <a href="[Link deleted]viagra now Best price for viagra

  14. Pfizer viagra canada 4 weeks ago

    Tgrdcq segbrh <a href="[Link deleted]viagra Buy brand viagra

  15. Sample viagra 4 weeks ago

    Cxhate dmvkon <a href="[Link deleted]viagra professional Buy real viagra online without prescription

  16. Get viagra 4 weeks ago

    Axwqit sezlcp <a href="[Link deleted]pfizer viagra online Viagra order

  17. Viagra approved 4 weeks ago

    Pwrark rwcyky <a href="[Link deleted]viagra in us Buy viagra

  18. Generic viagra us 3 weeks ago

    Mkiodj tpikwc <a href="[Link deleted]erectile dysfunction pills online Buy viagra brand

  19. Buy viagra us 3 weeks ago

    Iuymfn fpgfwh <a href="[Link deleted]cheap generic viagra online Get viagra fast

  20. EstherKef 3 weeks ago

    Onoyif bhjlth <a href="[Link deleted]100mg Viagra 50 mg

  21. viagra for sale

    viagra france – viagra 10mg cost it is currently – buy viagra online aim address

  22. cialis dosage 2 weeks ago

    online cialis

    where can i buy cialis safely vipps – ramipril cialis – cialis generic viagra

  23. cialis 20mg 2 weeks ago

    cialis generico
    canadian pharmacy cialis 20mg you cannot post new topics in this forum
    <a href="[Link deleted]effects for cialis
    – how safe is cialis
    cialis information sheet log-in

  24. Rewcls uqvday <a href="[Link deleted]ed pills best ed medication

  25. buy ed pills online 2 weeks ago

    Besrsh erjysp <a href="[Link deleted]ed pills non prescription erection pills

  26. cheap ed pills 1 week ago

    Njrvtn bzlbpo <a href="[Link deleted]erectile dysfunction pills online ed drugs

  27. pills for erection 1 week ago

    Daglcw roxkvx <a href="[Link deleted]erection pills cheap erectile dysfunction

  28. generic ed pills 6 days ago

    Cpypfv qxvsfq <a href="[Link deleted]on line pills for erection

  29. EstherKef 4 days ago

    Lgigrz lfddkm <a href="[Link deleted]viagra online United healthcare viagra

  30. cialis free trial

    cialis 20 mg street value registered users – cialis online order – cialis dosage information

Leave a reply

Your email address will not be published. Required fields are marked *


* is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account