A reason that a small firm would not use a discounted cash flow technique in evaluating capital investments would be
A)company management has a preference for another quantitative method.
B)liquidity is less of an issue for a small company.
C)non-financial issues may be more important for a small firm.
D)small firms invest more in short-term assets than large companies.

Question

Quizplus · Accepted Answer

Small firms may prioritize non-financial issues in capital investment decisions, such as strategic fit or potential for growth, over strictly financial considerations. Additionally, small firms may not have the resources or expertise to perform the complex calculations required for discounted cash flow analysis.

A Reason That a Small Firm Would Not Use a Discounted