discount n. the payment of less than the full amount due on a promissory note or price for goods or services. Usually a discount is by agreement, and includes the common situation in which a holder of a long-term promissory note or material goods will sell it/them for less than face value in order to get cash now---the difference is the discount ...
Discount: In finance, discount refers to the condition of the price of a bond that is lower than par, or face value. The discount equals the difference between the price paid for a security and ...
44 synonyms of discount from the Merriam-Webster Thesaurus, plus 47 related words, definitions, and antonyms. Find another word for discount. Discount: something that is or may be subtracted.
Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows. DCF analysis attempts to figure out the value of an investment today ...
What is a Discount Rate? In corporate finance Corporate Finance Overview Corporate finance deals with the capital structure of a corporation, including its funding and the actions that management takes to increase the value of, a discount rate is the rate of return used to discount future cash flows Cash Flow Cash Flow (CF) is the increase or decrease in the amount of money a business ...
Definition: Discounted cash flow (DCF) is a model or method of valuation in which future cash flows are discounted back to a present value using the time-value of money. An investment's worth is equal to the present value of all projected future cash flows.
In finance, discounted cash flow (DCF) analysis is a method of valuing a security, project, company, or asset using the concepts of the time value of money.Discounted cash flow analysis is widely used in investment finance, real estate development, corporate financial management and patent valuation.It was used in industry as early as the 1700s or 1800s, widely discussed in financial economics ...
Another word for discounted. Find more ways to say discounted, along with related words, antonyms and example phrases at Thesaurus.com, the world's most trusted free thesaurus.
The act of determining the present value of future cash flows.Because money is subject to inflation and has the ability to earn interest, one dollar today is worth more than one dollar tomorrow.Discounting, then, is the act of determining how much less tomorrow's dollar is worth. For example, a bank may loan a sum of money and schedule repayments at $100 per month for 10 years.
Cash flows will be discounted using a discount rate of 8% ; The above project results in a negative NPV of $522.1m, and XYZ should reject the project. Since the cash flows are discounted this means that if the project is accepted the total net outcome will be ($522.1m) in today's terms.
Discounted cash flow. Discounted cash flow (DCF) is the present value of a company's future cash flows. DCF is calculated by dividing projected annual earnings over an extended period by an appropriate discount rate, which is the weighted cost of raising capital by issuing debt or equity.
Discounted Amount means, at any single point in time, with respect to any Deferred Payments (or Additional Payments, as the case may be, solely for the purposes of Paragraphs 8.3(a) and 8.3(f)(B)) remaining due and payable (after giving effect to any adjustments pursuant to Paragraphs 4.1(d)(i)(B), 4.1(d)(i)(C), or 4.1(d)(ii)(C)), (a) if El Paso Corporation is not Investment Grade at that time ...
Discount loan. This is a loan in which the lender discounts interest and other charges first from the face value, before lending the money to the borrower. The lender only does this for short-term loans. Discount rate. The term discount rate can have several different meanings:
The noun discount refers to an amount or percentage deducted from the normal selling price of something. If you wait until after the holiday, you can often buy goods at a steep discount — just make sure you need all that stuff.
The discounted payback period is used to evaluate the profitability and timing of cash inflows of a project or investment. In this metric, future cash flows are estimated and adjusted for the time value of money. It is the period of time that a project takes to generate cash flows when the cumulative present value of the cash flows equals the ...
Definition of Discounted Payback Period. Discounted payback period is a capital budgeting method used to calculate the time period a project will take to break even and recover the initial investments. The calculation is done after considering the time value of money and discounting the future cash flows.
Formula. Each cash inflow/outflow is discounted back to its present value (PV). Then all are summed. Therefore, NPV is the sum of all terms, (+)where is the time of the cash flow is the discount rate, i.e. the return that could be earned per unit of time on an investment with similar risk is the net cash flow i.e. cash inflow - cash outflow, at time t.
Definition: Discounted Cash Flow (DCF) analysis aims to estimate the present value of the expected future returns on an investment.If investors know the present value of their future returns, they can determine if a stock is overvalued, undervalued, or fairly valued.
Definition and synonyms of discounted from the online English dictionary from Macmillan Education.. This is the British English definition of discounted.View American English definition of discounted.. Change your default dictionary to American English.
What is Discounted Payback Period? Discounted payback period refers to the time period required to recover its initial cash outlay and it is calculated by discounting the cash flows that are to be generated in future and then totaling the present value of future cash flows where discounting is done by the weighted average cost of capital or internal rate of return.
discount n. the payment of less than the full amount due on a promissory note or price for goods or services. Usually a discount is by agreement, and includes the common situation in which a holder of a long-term promissory note or material goods will sell it/them for less than face value in order to get cash now---the difference is the discount ...
The Short Answer What Premiums and Discounts Mean for ETFs Morningstar.com offers two sets of data points for a given ETF, but these data have two separate uses.
discount definition in English dictionary, discount meaning, synonyms, see also 'at a discount',discount house',discount market',discount store'. Enrich your vocabulary with the English Definition dictionary
at a discount 1. Below the usual commercial price or value. The prices are so much cheaper over there that I always feel like I'm getting things at a discount. 2. In low regard as to esteem, value, or worth; worthless or undesirable. The rebels were at first celebrated for defying the monarchy, but they are now at a discount since they began attacking ...