Discounted Cash Flow (DCF) is a financial valuation method used to determine the value of an investment based on its expected future cash flows, which are discounted to reflect their present value. This technique takes into account the time value of money.
A financial metric that adjusts the Internal Rate of Return (IRR) by considering practical aspects such as the cost of funds and returns from interim investments.
Internal Rate of Return (IRR) is a crucial financial metric used to evaluate the attractiveness of an investment by calculating the annualized rate of return earned over the investment's lifespan, taking into account the effect of compound interest.
The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments or compare the expected profitability of different investments. It is the discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.
Net Present Value (NPV) is a method of determining whether the expected performance of a proposed investment promises to be adequate by calculating the present value of expected future cash flows minus the initial investment cost.
Yield to Maturity (YTM) is the internal rate of return on an investment, considering all inflows and outflows of investment returns and their timing, providing a comprehensive view of the investment's profitability.
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