Discounted Cash Flow Calculator Tool:
Creating a discounted cash flow (DCF) calculator involves calculating the present value of future cash flows by discounting them back to their present value using a discount rate. Below is a simplified version of the DCF calculator implemented in HTML, CSS and JavaScript.
Discounted Cash Flow Calculator
Features of Discounted Cash Flow (DCF) Calculator:
- Cash Flow Input: Allows the user to input a future cash flow value.
- Discount Rate Input: Allows the user to input the discount rate as a percentage.
- Input Number of Periods: Allows the user to input the number of years.
- Calculate DCF Button: Starts calculating the present value of cash flows.
- Result Display: Displays the calculated current value below the button.
How it Works:
- When the user clicks the "Calculate DCF" button, the calculateDCF() function is called.
- The function retrieves the cash flow value and discount rate input by the user.
- It then calculates the present value of the cash flows using the formula: Present Value = Cash Flows / (1 + Discount Rate).
- The calculated current value is displayed in the results section.
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