Discounted Cash Flow


It is a useful conception from Discounted Cash Flows that they are future cash flows expressed in terms of their present value. The discounted cash flow technique employs this reasoning by evaluating the present value of a business’s net cash flow (cash inflows minus cash outflows). A simplified view of cash flow is “cash flow from operations,” which is net income plus depreciation charges, because depreciation is a non-cash charge against sales to determine net income. The present value of a stream cash flows is obtained by selecting an interest or discount rate at which these flows are to be valued, or discounted, and the timing of each. The interest or discount rate is often defined by the opportunity cost of capital—the cost of earning opportunities forgone by investing in a business with its attendant risk as opposed to investing in risk free securities

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Specifying Problems


In the broader sense a problem is the area of concern expressed by the client/system and the area on which the practitioner and client/system agree to work. Thus, a problem doesn’t have to be “negative” or harmful. It could be a strength or an asset on which a client/system wishes to build. In this sense the term, problem can be seen as roughly synonymous with target that which the practitioner and/or client/system aims at for change purposes. A problem in this conception, then, could be a behavior, thought, feeling, activity, or situation the client/system finds undesirable (for example, too much inappropriate anxiety or oppressive agency practices), or a behavior, thought, feeling, activity, or situation the client/system wants to build on.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight