The discounted cash flow method is a valuation method used to estimate an investment's value based on its expected future cash flows.Select one:TrueFalse

The statement is True.

The discounted cash flow (DCF) method is indeed a valuation technique used to estimate the value of an investment based on its expected future cash flows. In this method, future cash flows are projected and then discounted back to the present value using a discount rate, which typically reflects the investment's risk or the cost of capital. This method is widely used by investors and analysts to evaluate potential investments, assess corporate finance decisions, and determine the fair value of assets.

By taking into account the time value of money, the DCF method provides a comprehensive approach to investment valuation, helping to ensure that future cash flows are appropriately valued today.