Finance - Assessing an investment project

3 important questions on Finance - Assessing an investment project

How does the discounted cash flow analysis  values an investment project?

All future cash flows are calculated by taking into consideration their future value

Why is future value considered lower than current value?

Due to interest rates

What is the return of investment?

Measure used to evaluate the profitability of an investment project or to compare the profitability of different investments

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