Abstract
In Chapter 19 we looked at two techniques of investment appraisal, the payback period and the accounting rate of return. However, as we discussed, both these techniques suffer from severe limitations. Because capital investment appraisal is so crucial to decision-making, managers need to use a technique that provides valuable financial information. Discounted cash flow (DCF) does just this.
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© 1999 Jill Hussey and Roger Hussey
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Hussey, J., Hussey, R. (1999). Discounted Cash Flow. In: Business Accounting. Macmillan Business Masters. Palgrave, London. https://doi.org/10.1007/978-1-349-14784-7_20
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DOI: https://doi.org/10.1007/978-1-349-14784-7_20
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-73081-2
Online ISBN: 978-1-349-14784-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)