Small businesses probably make less use of the DCF capital budgeting techniques than large businesses. This may reflect a lack of knowledge on the part of small firms' managers, but it may also reflect a rational conclusion that the costs of using DCF analysis outweigh the benefits of these methods for those firms.

Question

Quizplus · Accepted Answer

Small businesses may not be as familiar with DCF capital budgeting techniques, but they may also decide that the benefits of using these methods do not outweigh the costs, such as the time and resources needed to gather data and perform the analysis.

Small Businesses Probably Make Less Use of the DCF Capital