For the typical business plan having current and early cash outflows and later-stage cash inflows, the VSCS will give a higher valuation than the DDA.

Question

Quizplus · Accepted Answer

The DCF (Discounted Cash Flow) method typically gives a higher valuation than the VC method (Venture Capital Method) for early-stage companies because DCF considers the long-term potential cash inflows, while the VC method focuses more on near-term risks and the need for high returns on investment.

For the Typical Business Plan Having Current and Early Cash