👉 A discounted project, often referred to as a discounted valuation or discounted cash flow (DCF) analysis, is an economic evaluation method used to estimate the value of a project or business venture by discounting expected future cash flows to their present value. This approach acknowledges that money available today is worth more than the same amount in the future due to its potential earning capacity. By applying a discount rate, which reflects the time value of money and risk associated with future cash flows, the discounted project helps investors or decision-makers assess whether a project is financially viable and worth pursuing.
