Problem: Describe how you would use a Discounted Cash Flow and Net Present Value accounting method to make a decision in your business or profession.
Q1. Describe the DCF and NPV methods (what they are and how they can be used)
Q2. Write a short story about a sample company who would like to conduct a large investment but they are wondering how soon they will get a return on their investment and how will their cash flow look like.
Next, show some sample figures (not just words) and use the DCF model and NPV calculation to determine whether an investment or project should be carried out or not.
Q3. Summarize and make a final recommendation.