Superior analytical techniques,such as NPV,used in combination with cost of capital adjustments,can overcome the problem of poor cash flow estimation and lead to generally correct accept/reject decisions.

Question

Quizplus · Accepted Answer

Superior analytical techniques and cost of capital adjustments can improve decision-making but cannot overcome the fundamental problem of poor cash flow estimation, as the accuracy of these decisions heavily depends on the quality of the cash flow projections.

Superior Analytical Techniques,such as NPV,used in Combination with Cost of Capital