ENTREPRENEURSHIP

Detailed explanation-1: -Discounted Cash Flow Method – The Discounted Cash Flow Method is an income-based approach to valuation that is based upon the theory that the value of a business is equal to the present value of its projected future benefits (including the present value of its terminal value).

Detailed explanation-2: -The time value of money concept is the basis of discounted cash flow analysis in finance. The discounted cash flow allows for the accumulation of expected interest earned on a sum. Discounting cash flow is one of the core principles of small business financing operations.

Detailed explanation-3: -Timing and Cash Flow Timing is about when you get the money relative to when the money goes out. And this can be just as important as how much money you end up with each month. A mortgage payment is a good example. Maybe your mortgage is set to come out of your account on the 12th of the month.

Detailed explanation-4: -Historical cash flow information is often used as an indicator of the amount, timing and certainty of future cash flows. It is also useful in checking the accuracy of past assessments of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing prices.