Capital budgeting


This query is : Resolved 

08 August 2013 dear sir,
I have a query about Discounted Cash inflow, which is the part of capital budgeting. My most agenda to ask this why we are calculate Discounted cash inflow. I am waiting for your replay. I really need this
thank you....
in advance

08 August 2013 If you calculated only cash flow, then the cash generated will not take time value of money in consideration.

but when discounted cash flow will take consideration of time value of money and it is the most appropriated method to evaluate the project.


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