L2 · Required

Discounted cash flow

Match cash-flow definitions and discount rates.

What you should be able to do

Independently: Discount two periods of cash flow and state terminal assumptions separately.

Suggested prerequisites

A short guide

Match cash-flow definitions and discount rates. Discount two periods of cash flow and state terminal assumptions separately. Read the indicated source section, identify its key concepts and conditions, and work through the example. Record inputs, sources, units and assumptions. Keep your method separate from the result, mark unanswered questions, and review the output against the checklist.

An example

110 received in one year at 10% has a present value of 100.

Your task

Discount two periods of cash flow and state terminal assumptions separately.

Start with this source

Read the indicated section relevant to discounted cash flow and complete the applied task.

This source is awaiting renewed review. Try the task above and adjacent skills; reviewed sources will appear here.

Your learning checklist

Required items: 0 / 10 completed or already known

Device storage

Next: Read a role through its responsibilities

Checklist statuses are self-reported; exercise scores are recorded separately. You can reset any item.

Self-check

Try a practice set

Calculations and choices receive immediate checks. Review open responses yourself against the rubric. All examples are educational.

1. Receive 110 in one year at a 10% discount rate. What is its present value?
2. What should you check first in comparable valuation?
3. After the transactions and financing task, state one assumption, one supporting fact and one condition that would change your conclusion.