Discounted cash flow - Revision history

S194759: /* Investopedia.com, Discounted Cash Flow (DCF) Explained With Formula and Examples */

2023-05-09T10:35:52Z

Investopedia.com, Discounted Cash Flow (DCF) Explained With Formula and Examples

← Older revision		Revision as of 10:35, 9 May 2023
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	==== Investopedia.com, Discounted Cash Flow (DCF) Explained With Formula and Examples ====		==== Investopedia.com, Discounted Cash Flow (DCF) Explained With Formula and Examples ====
	This article (Internet resource) explains what the discounted cash flow method is, along with examples of calculations. It also presents some limitations of the method, and how it should be used properly. As this is from a website, the credibility might not be as high as a published paper. However, it is an online based "newspaper" type platform formed in 1999, have won several awards and are transparent with their sources and writers. Overall a credible source, considering that it is from a website. Investopedia's articles has been used for more that just DCF for this wiki-page.		This article (Internet resource) explains what the discounted cash flow method is, along with examples of calculations. It also presents some limitations of the method, and how it should be used properly. As this is from a website, the credibility might not be as high as a published paper. However, it is an online based "newspaper" type platform formed in 1999, have won several awards and are transparent with their sources and writers. Overall a credible source, considering that it is from a website. Investopedia's articles has been used for more that just DCF for this wiki-page. All the uses can be seen in the references section.

	==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====		==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====

S194759: /* Annotated bibliography */

2023-05-09T10:35:30Z

Annotated bibliography

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	=====J.D Piante, 2014, The project as investment=====		=====J.D Piante, 2014, The project as investment=====
	This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.		This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.

			==== Investopedia.com, Discounted Cash Flow (DCF) Explained With Formula and Examples ====
			This article (Internet resource) explains what the discounted cash flow method is, along with examples of calculations. It also presents some limitations of the method, and how it should be used properly. As this is from a website, the credibility might not be as high as a published paper. However, it is an online based "newspaper" type platform formed in 1999, have won several awards and are transparent with their sources and writers. Overall a credible source, considering that it is from a website. Investopedia's articles has been used for more that just DCF for this wiki-page.

	==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====		==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====

S194759: /* Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) */

2023-05-09T10:30:20Z

Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples)

← Older revision		Revision as of 10:30, 9 May 2023
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	==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====		==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====
			This article (Internet resource) discusses what operating expences (OPEX) are and how they are used and assessed within company management.

	==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====		==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====

S194759: /* Annotated bibliography */

2023-05-09T10:29:14Z

Annotated bibliography

← Older revision		Revision as of 10:29, 9 May 2023
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	=====J.D Piante, 2014, The project as investment=====		=====J.D Piante, 2014, The project as investment=====
	This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.		This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.

			==== Bobbie Anne Munsey, 2023, What Are Operating Expenses? (With Types and Examples) ====


	==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====		==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====

S194759: /* S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY */

2023-05-09T10:28:37Z

S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY

← Older revision		Revision as of 10:28, 9 May 2023
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	==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====		==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====
	This paper discusses the emergence of the discounted cash flow method in history, more specifically in the coal industry thorughout the 1700 hundreds. It		This paper discusses the emergence of the discounted cash flow method in history, more specifically in the coal industry thorughout the 1700 hundreds. It highlights the origin of the method, and how it was a wealth-maximising analysis thoughout history.

	== References ==		== References ==

S194759: /* Annotated bibliography */

2023-05-09T10:27:14Z

Annotated bibliography

← Older revision		Revision as of 10:27, 9 May 2023
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	== Annotated bibliography ==		== Annotated bibliography ==

	=====J.D Piante, The project as investment~~, 2014~~ =====		=====J.D Piante, 2014, The project as investment=====
	This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.		This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.

			==== S. Brackenborough et al, 2001, THE EMERGENCE OF DISCOUNTED CASH FLOW ANALYSIS IN THE TYNESIDE COAL INDUSTRY ====
			This paper discusses the emergence of the discounted cash flow method in history, more specifically in the coal industry thorughout the 1700 hundreds. It

	== References ==		== References ==

S194759: /* Limitations */

2023-05-09T10:25:30Z

Limitations

← Older revision		Revision as of 10:25, 9 May 2023
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	Another limitation is that to allow for more precision, a lot of complexity will be introduced into the equations, for example in the free cash flow calculations, which were simplified for the purposes of this article. However, in reality it is not as simple to find the OPEX and CAPEX, and there are many other numbers that could be assessed.<ref name = "FCF" /> Furthermore, if aiming for precision of the model, it can only be as good as the forecasts of the future. This is all very well summed up in the phrase "Garbage in = Garbage out."		Another limitation is that to allow for more precision, a lot of complexity will be introduced into the equations, for example in the free cash flow calculations, which were simplified for the purposes of this article. However, in reality it is not as simple to find the OPEX and CAPEX, and there are many other numbers that could be assessed.<ref name = "FCF" /> Furthermore, if aiming for precision of the model, it can only be as good as the forecasts of the future. This is all very well summed up in the phrase "Garbage in = Garbage out."

	Furthermore, since projects are unpredictable by nature, it can be difficult to know when a return on the investment will start. This means that it can be very hard to predict future cash flows, which are needed to calculate the Discounted Cash Flow and the Net Present Value.		Furthermore, since projects are unpredictable by nature, it can be difficult to know when a return on the investment will start. This means that it can be very hard to predict future cash flows, which are needed to calculate the Discounted Cash Flow and the Net Present Value. <ref name="PMI" />

	Therefore, NPV and DCF should never be used as the sole reason for doing or not doing an investment in a project or a business.		Therefore, NPV and DCF should never be used as the sole reason for doing or not doing an investment in a project or a business.

S194759: /* Limitations */

2023-05-09T10:25:13Z

Limitations

← Older revision		Revision as of 10:25, 9 May 2023
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	Another limitation is that to allow for more precision, a lot of complexity will be introduced into the equations, for example in the free cash flow calculations, which were simplified for the purposes of this article. However, in reality it is not as simple to find the OPEX and CAPEX, and there are many other numbers that could be assessed.<ref name = "FCF" /> Furthermore, if aiming for precision of the model, it can only be as good as the forecasts of the future. This is all very well summed up in the phrase "Garbage in = Garbage out."		Another limitation is that to allow for more precision, a lot of complexity will be introduced into the equations, for example in the free cash flow calculations, which were simplified for the purposes of this article. However, in reality it is not as simple to find the OPEX and CAPEX, and there are many other numbers that could be assessed.<ref name = "FCF" /> Furthermore, if aiming for precision of the model, it can only be as good as the forecasts of the future. This is all very well summed up in the phrase "Garbage in = Garbage out."

			Furthermore, since projects are unpredictable by nature, it can be difficult to know when a return on the investment will start. This means that it can be very hard to predict future cash flows, which are needed to calculate the Discounted Cash Flow and the Net Present Value.

	Therefore, NPV and DCF should never be used as the sole reason for doing or not doing an investment in a project or a business.		Therefore, NPV and DCF should never be used as the sole reason for doing or not doing an investment in a project or a business.

S194759: /* J.D Piante, The project as investment, 2014 */

2023-05-09T10:23:44Z

J.D Piante, The project as investment, 2014

← Older revision		Revision as of 10:23, 9 May 2023
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	=====J.D Piante, The project as investment, 2014 =====		=====J.D Piante, The project as investment, 2014 =====
			This article from the Project Management Institute (PMI) discusses the value in considering projects as investments, and not just like investments. It also highlights the risks involved and the the return on investment. Furthermore, it also briefly mentions the downside of NPV, as it is very difficult to predict the future cash flows of a project.

	== References ==		== References ==

S194759: /* Annotated bibliography */

2023-05-09T10:21:22Z

Annotated bibliography

← Older revision		Revision as of 10:21, 9 May 2023
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	== Annotated bibliography ==		== Annotated bibliography ==
	~~ddd~~

			=====J.D Piante, The project as investment, 2014 =====

	== References ==		== References ==