What is a Discounted Cash Flow - DCF?

The video tutorial explains the concept of discounted cash flow (DCF), emphasizing the time value of money and how inflation affects cash value over time. It covers the calculation of present value and net present value (NPV), and introduces the internal rate of return (IRR) as a measure of project profitability. The tutorial advises project managers to understand these financial principles to effectively build business cases and conduct investment appraisals, even if they rely on financial experts for detailed calculations.

What is the internal rate of return and how does it relate to net present value?

Why is it suggested that project managers should not build their own discounted cash flow models?

What basic principles should project managers understand regarding discounted cash flows?