**Visit the PAMS-DCF Blog by clicking the Blue Button to the right >>>>>>>>>>>**

**Portfolio Analysis & Management System**

**Discounted Cash Flow Analysis**

**The Definitive Book & Software System for Present Value or Discounted Cash Flow Analysis**

PAMS-DCF, Inc.

16401 Wildwood Court

Punta Gorda, FL 33982

USA

Sales

Telephone: Phil Tirino (845) 656-1273

FAX: (845) 215 0003

E-mail: Sales@PAMS-DCF-INC.COM

or

philtirino@netzero.net

**What are Extended Yield Analysis Methods ?**

Introduction Part 1:

06/13/2015

One of PAMS-DCF's goals was to introduce a new way of **learning about Discounted Cash Flow Analysis **that provided a hands on approach using sophisticated yield analysis software that here- to- fore was available only to the big guys on the block. This forum will discuss definitions and issues of various topics, many of which are covered by the glossary contained in our book. I'd like to start by discussing the mathematical principals that are required in the use of DCF. We intend to keep the discussion in strictly laymen's terms. Our first goal is to explain the geniuses of "Extended Yield Methods" and why they are needed.

DCF (discounted cash flow ) analysis uses various formulas in computing Present Values and Future Values , payment amounts and terms depending on the given information. Some of theses formulas in mathematics' jargon are generally referred to as **Polynomials.** They are equations that have certain attributes common to all in their class and they behave in a fixed and determinable way across their entire spectrum. There are certain rules that should always be tested for when dealing with this class of equations known as or called Polynomials. We don't really care what the attributes are or what most of the rules are for theses equations, **but (and there is always a "but") there is one rule that does effect DCF analysis that we must learn to deal with in order to avoid making some very serious miscalculations. **We don't have to learn the proof of this rule, or why it is always true. The appendix of our book covers a proof and extended discussion, but you had better be a mathematician of sorts to follow it. We simply have to learn how to **test for cash flows that have the potential of breaking this rule and do something to reestablish the rule's principal in the flows we are examining.**

Some of you are already familiar with the name

(to be continued)

**This is a discussion page. We would like to hear from you about any of the topics we will be discussing. Blog us below or E-mail us at philtirino****@pams-dcf-inc.com. Your questions and observations are welcomed.**

** June 12, 2015...**

**Discussion ....Extended Yield Methods**

Copyright © PAMS-DCF

- Home
- Company
- Pricing
- Contact Us
- Yield Engine Software & Book
- Sample Screens
- Reports
- System Overview
- Table of Contents
- What's New
- Strictly Shop Talk... Extented Yield Methods
- Extended Yield Methods 2
- Extended Yield Methods 3
- Extended Yield Methods 4
- Extended Methods Part 5
- section 5 exhibit a1 to a3
- Section 5 Exhibits B1 to B3
- section 6 ehibit C-1 to C-3
- Advance vs. Arrears Payments
- Strictly Shop Talk
- PAMS-DCF Accounting System