I would like to know what types of projects would discounted cash flow
analysis apply?

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Request for Question Clarification by easterangel-ga on 11 Mar 2004 03:24 PST

Hi!

Any company can do a discounted cash flow analysis so what do you mean
by "what type of projects"?

Thanks!

Hi! Please disregard my request for clarification and thanks for the question.

Discounted cash flow analysis applies to the following projects:

- proposed construction 
- land development; 
- condominium development or conversion; 
- rehabilitation development; 
- and income-producing real estate of various types.  
- investment value
- market value appraisals

?Discounted Cash Flow Analysis?
http://www.alo.dir.bg/resDiscounted.htm 

- Another use is for the valuation of companies in the stock market

?Taking Stock of Discounted Cash Flow?
http://www.investopedia.com/articles/03/011403.asp 


Search strategy used:
When is "DCF analysis" projects

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Easterangel-ga                 
Google Answers Researcher

Thanks for the quick turn around to my question.  Also, thanks for the
added comment, it gave me more insight to my question.

Easterangel has identified a wide range of projects in which
discounted cash flow applies.  The real criteria for using discounted
cash flow is: any project where outlays and income are spread out over
time.  At "normal" interest rates seen in the G-7 countries, this
would be a period of at least one year, but usually multi-year
projects.

Discounted cash flows can be used for shorter periods in a
hyper-inflation environment.  They can also be used with risk
adjustments for shorter periods -- but it's the combination of time
and interest rates that make them relevant.

Best regards,

Omnivorous-GA