Discounted Cashflow

From BCMpedia. A Wiki Glossary for Business Continuity Management (BCM) and Disaster Recovery (DR).
Jump to: navigation, search
1. Coming soon.

(Source: Business Continuity Management Institute - BCM Institute)

2. An evaluation of the future net cashflows generated by a capital project by discounting them to their present-day value. The two methods most commonly used are:

  • Yield method, for which the calculation determines the internal rate of return (IRR) in the form of a percentage;
  • Net Present Value (NPV) method, in which the discount rate is chosen and the answer is a sum of money.

(Source: OGC, Information Technology Infrastructure Library (ITIL) v3)