Use Discounted Cash Flow to Value a Phone Contract

sauce2k on 08/05/2015 - 23:55

Hi guys,

Trying to understand how to use discounted cash flow model to see if a phone contract is worth or not..Anyone knows how?

Thanks

Mobile

Comments

  • ozhunter on 09/05/2015 - 00:25

    I'm not sure, but couldn't you use a financial calculator for this?

  • retiredfeline on 09/05/2015 - 00:32

    Or an online calculator?

  • gmail92 on 09/05/2015 - 09:34
    +1

    lol . the cashflows are so minute there's no point to discount them at the interest rate. Just sum the cashflows up.

    Not to mention phone contracts are a pretty bad example to use for DCF.

  • TheAviator on 09/05/2015 - 10:07

    If you mean an NPV style calculation, that's not going to work unless you're generating revenues off your phone,

    If you just mean a present value to today, well as said above, it's not going to be hugely different to the listed price since the cash flows are quite small. Still if you want to, just find an online financial calculator :)

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