How to Calculate Future Cash Flow Discount. Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your ...

Learn how to calculate the discount rate in Microsoft Excel, what the discount factor is, and how the discount rate and discount factor compare.

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

Calculating the IRR for a project with an initial outlay and single cash flow is very easy to do. It's also very practical for measuring the returns.