ASSIGNMENT 2

Assignment 2

Assignment 2

Answer 1 (b)

The discounted cash flow (DCF) is a method by which an organization can estimate the value of a project be it property or some major investment. The main logic behind using this technique is the involvement of time value of money that is usually skipped by other techniques of valuation. This technique is used by discounting the estimated cash flows generated by the property investment at an appropriate rate of return (Damodaran, A., n.d., pp. 1-30). The rationale behind using this approach is that it assesses the property on a common base like bond and equity. ...