The key inputs into a discounted cash flow analysis are the projected:
A) Net income amounts for each year of the project.
B) Cash flows for each period of time.
C) Sales and opportunity costs for each year of the project.
D) Initial costs and related depreciation expenses.
E) Changes in net income resulting from accepting a project.

Question

Quizplus · Accepted Answer

The core of a discounted cash flow (DCF) analysis involves projecting the cash flows for each period of time and discounting them back to their present value. This method focuses on cash flows rather than accounting measures like net income, sales, or changes in net income.

The Key Inputs into a Discounted Cash Flow Analysis Are