FaxWork Inc.wishes to start manufacturing compact and portable fax machines.Though the initial investments and the risks associated with the project are quite high,the anticipated future benefits are high too.With which of the following quantitative methods can FaxWork assess and evaluate the new project to justify the expenditure?
A) Q-sort
B) Screening
C) Discounted cash flow analysis
D) The project map

Question

Quizplus · Accepted Answer

Discounted cash flow analysis is the most appropriate quantitative method for assessing and evaluating the new project to justify the expenditure. This method helps in estimating the future cash flows that the project is expected to generate and discounting them to the present value, considering the time value of money. This will help FaxWork Inc. to determine whether the project is financially feasible and profitable in the long run.