Page "Discounted cash flow" Paragraph 4
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Wikipedia
The most widely used method of discounting is exponential discounting, which values future cash flows as " how much money would have to be invested currently, at a given rate of return, to yield the cash flow in future.
" Other methods of discounting, such as hyperbolic discounting, are studied in academia and said to reflect intuitive decision-making, but are not generally used in industry.
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