Traditional v/s DCF Methods


-3

TRADITIONAL V/S DCF METHODS

 

Traditional method

 

  • The traditional method are also referred to as unsophisticated or non discounted cash flow method
  • These method is known as non DCF because they do not take time factor into consideration
  • These are the various Non DCF methods –
  1. Pay back period
  2. Accounting rate of return

 

 

DCF method

 

  • The discounted cash flow method are also known as sophisticated or time adjusted methods
  • This are known as DCF method because it take time factor into account
  • The following are the various DCF methods –
  1. Net present value
  2. Internal rate of return
  3. Profitability index

 

The following two tabs change content below.
We, at BMS.co.in, 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]

Like it? Share with your friends!

-3
BMS Team

We, at BMS.co.in, 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]

64 Comments

Facebook comments:

Ask Us On WhatsApp