What is the definition of Discounted Cash Flow in the hotel industry?
DCF abbreviates for: Discounted Cash Flow
The expression Discounted Cash Flow refers to a evaluation method made use of when set up the future value of an investment, based on the cash flow it is forecasted to create in the future. The Discounted Cash Flow examination is thereby able to emphasize the present value (PV) of the cash produced by an investment in the potential future.
Corporations most appropriate to the DCF analysis are those in business such as utilities, oil and gas or banking, hotel and industries where revenue, expenditures and development tend to be relatively steady and steady over time.