Discounting cash flows involves discounting all expected future cash flows to reflect the time value of money. estimating only the cash flows that occur in the first 4 years of a project. taking the cash discount offered on trade merchandise. multiplying expected future cash flows by the cost of capital. discounting only those cash flows that occur at least 10 years in the future. Discounting cash flows involves discounting all expected future cash flows to reflect the time value of money. estimating only the cash flows that occur in the first 4 years of a project. taking the cash discount offered on trade merchandise. multiplying expected future cash flows by the cost of capital. discounting only those cash flows that occur at least 10 years in the future