Infinance,discounted cash flow(DCF) analysis is acommontechnique ofplacing value ona projectorcompany.Allofthefuturecash flowsare projected anddiscountedby using cost ofcapital to determinetheirpresent values(PVs). Adding up all future cash flows, both incoming and outgoing,providesthenet present value(NPV).

Give an example of a situation where a building contractor may want to use thediscounted cash flow(DCF) analysismethod.