A disadvantage of using the discounted cash flow method (or net present value) for selecting projects is that it ignores all non-monetary factors associated with the project.

Question

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The discounted cash flow method only considers the monetary aspects of a project, such as cash inflows and outflows over time, and does not take into account non-monetary factors such as social impact, environmental impact, or strategic fit. Therefore, it is less comprehensive than other project selection methods that consider both monetary and non-monetary factors.

A Disadvantage of Using the Discounted Cash Flow Method (Or