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The WACC is used as a discount rate to determine the present value of future cash flows in discounted cash flow analysis. In general, a company’s WACC is typically considered to be the minimum ...

Discounted free cash flow for the firm (FCFF) should be equal to all of the cash inflows and outflows, adjusted to present value by an appropriate ... the rights to all future cash flow.

In other words, the initial capital outlay (how much is invested at the beginning) is equal to the present value of the future cash flows (money brought in) as a result of the amount invested.

(NASDAQ:VLGE.A) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF ...