Income associated with a financial asset is money that is generated by the terms of the contract. Such as the revenue a stock company generates from its operations or the rent a piece of real estate can generate.
The discounted cash flow model is a method in quantitative finance of valuing a security, project, company, or asset using the concepts of the time value of money.
- Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.