Which of the following is not an advantage of the discounted cash flow approach to project selection?
A)Simple to use and understand
B)The accounting data is usually available
C)The accounting data is possibly inaccurate
D)They can be adjusted to account for project risk

Question

Quizplus · Accepted Answer

The discounted cash flow approach's disadvantage is that the accounting data used might be inaccurate, not an advantage. This method relies on future cash flow projections, which can be uncertain or based on assumptions that may not hold true.

Which of the Following Is Not an Advantage of the Discounted