Discounted Cash Flow Calculator
How the DCF Calculator Works
The DCF Calculator is an accessible and practical tool designed for both novice and experienced investors. Here’s a step-by-step guide on how to use it:
-
Input Future Cash Flows: Start by entering the expected future cash flows. These can be revenues, expenses, or other financial data, projected for different periods.
-
Input Discount Rate: Enter the discount rate, which represents the required rate of return or the cost of capital for your investment.
-
Calculate Present Value: The calculator will automatically compute the present value of the future cash flows, providing you with an accurate assessment of their worth today.
-
Evaluate Investment: Use the calculated present value to evaluate the attractiveness of an investment, compare financial opportunities, and make well-informed financial decisions.