Discounted cash-flow (DCF)analysis generally
I.assumes that firms hold assets passively when it invests in a project;
II.considers opportunities to expand a project if the project is successful;
III.considers opportunities to abandon a project if the project is a failure
A)I only
B)II only
C)II and III only
D)I, II, and III

Question

Quizplus · Accepted Answer

DCF analysis typically assumes a passive investment strategy, not considering future opportunities to expand or abandon projects.

Discounted Cash-Flow (DCF)analysis Generally