discounted cash flow




  • noun a calculation of forecast sales of a product in current terms with reductions for current interest rates

Health Economics

  • (written as Discounted Cash Flow)
    A flow of money over a time period in which each period's cash is adjusted by an appropriate discount factor to represent its (reduced) future value (fundamentally due to time preference). The present value of the flow is the sum of these discounted values over the period in question.