Discounted cash flow and EC Directive 2007/64/EC: Difference between pages

Revision as of 16:00, 22 January 2014

European Union law.

Directive on Payment Services, (PSD), which sets out the legal foundation for the creation of an EU-wide single market for payments.

Replaced Directive 97/5 EC.

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-(DCF).
+''European Union law.''
-A process of discounting cash flows that are expected in the future to make them comparable in value with cash flows received today.
+Directive on Payment Services, (PSD), which sets out the legal foundation for the creation of an EU-wide single market for payments.
-This process is widely used in investment appraisal, where the rate used to discount with is a measure of the appropriately risk adjusted cost of capital.
+Replaced Directive 97/5 EC.
-Where the sum of discounted future positive cash flows (inflows) is calculated, this is often referred to as the total ''Present value'' of those cash flows.
-Where the present value of future expected cash flows is netted against discounted investment outflows, this is referred to as the ''Net present value'' of the investment proposal.
-Discounted cash flow techniques include Net Present Value (NPV) analysis and Internal Rate of Return (IRR) analysis.
 == See also ==
-* [[Discount rate]]
+* [[EC Directive 97/5EC ]]
-* [[Incremental cash flows]]
+* [[Single Euro Payments Area]]
-* [[Internal rate of return]]
-* [[Investment appraisal]]
-* [[Net present value]]
-* [[Present value]]
-* [[Time value of money]]
-==Other links==
-[http://www.treasurers.org/node/8445 Masterclass: Discounted cash flow, The Treasurer 2012]
-[[Category:Business_Valuation]]
+[[Category:Payment_and_Clearing_Systems]]
-[[Category:Investment_Appraisal]]
+[[Category:Regulation_and_Law]]