Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

Learn how discounted after-tax cash flow helps evaluate real estate investments by factoring in taxes and determining profitability, essential for investment decisions.

Over the years, Warren Buffett and Charlie Munger have articulated an approach to discounting at odds with academic finance. Buffett and Munger eschew complicated math and spreadsheets in favor of ...

Understand the replacement chain method, a crucial capital budgeting tool for comparing projects with different life spans. Explore how it works, its requirements, and alternatives.

Discounted Cash Flow analysis is one of the primary valuation methods. Seeking Alpha authors should understand the strengths and weaknesses of a DCF model and best practices. Here we look at resources ...