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discounted cashflow other assets

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Gregoire_S | 09:58 Sun 10th Jul 2005 | Business & Finance
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Can the discounted cashflow methos to value companies be used to value al sorts of assets?
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Assuming that you mean the net present value rule, it can be used to value anything with a set of cash flows, compared to anything else with a set of cash flows, using a suitable cost of capital percentage as a discount rate. For example, if you own a business, do you invest �10 k in new machinery, or in corporate bonds?
Agree with Andy008, though it can also be used to analyse a single value, provided the timeperiod is explicit.  However, the DCF is more conventionally used to identify the value of a "project", whatever that may be, over a period of time.

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