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dcf

DCF

1) Discounted cash flow - means of determining the present day value of future cash flows - or financial returns (eg emanating from a project to be inaugurated at some future date). It is usual to apply a rate of discount of eight per cent per annum, but it is not unusual for investment that fails this test to be authorized in the public sector if it can be claimed to be ‘in the public interest’. An essential factor in cost-benefit analysis.

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