Which of the following is a reason that a small firm would NOT use a discounted cash flow (DCF) technique in evaluating capital investments?
A) Company management has a preference for another quantitative method.
B) Liquidity is less of an issue for a small company.
C) Financial management talent within a small firm is a scarce resource.
D) Small firms invest more in short-term assets than large companies.

Question

Quizplus · Accepted Answer

Financial management talent is often a scarce resource for small firms, which may limit their ability to use more complex quantitative methods like DCF.

Which of the Following Is a Reason That a Small