An advantage associated with discounted cash flow calculations is that they incorporate many important nonfinancial factors that influence decisions, such as the reaction of competitors, the relationship of one part of the business to another, or organizational learning.

Question

Quizplus · Accepted Answer

Discounted cash flow calculations primarily focus on financial metrics and do not inherently account for nonfinancial factors like competitor reactions or organizational learning.

An Advantage Associated with Discounted Cash Flow Calculations Is That