capitalization of income
Definition
A method of evaluating an investment by estimating future cash flows and taking into consideration the time value of money. also called Discounted Cash Flow (DCF) Analysis.
Use this term in a sentence
“ You should try to make sure you are getting the most capitalization of income that you can get on any deal. ”
“ The capitalization of income was the best method for approximating the value of the cash flows generated by the project. ”
“ They were veritable superstars in the financial sector, leveraging their knowledge of capitalization of income to stellar results quarter after quarter. ”
