- 1 Marks
Question
The acronym “DCF” represents:
A. Discounted Cash Flow
B. Discount Cash Flow
C. Distribution Cash Flow
D. Distributed Cash Flow
E. Discounted Cash Factor
Answer
A. Discounted Cash Flow
Explanation:
The correct answer is A. Discounted Cash Flow (DCF) is a method used to evaluate the value of an investment based on its expected future cash flows. These future cash flows are discounted back to the present value using a discount rate, typically reflecting the investment’s cost of capital.
- Tags: Discounted Cash Flow, Financial Appraisal, Investment Analysis
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2021
- Uploader: Theophilus