A Reason That a Small Firm Would Not Use a Discounted

question 71

Multiple Choice

A reason that a small firm would not use a discounted cash flow technique in evaluating capital investments would be

• A)company management has a preference for another quantitative method.
• B)liquidity is less of an issue for a small company.
• C)non-financial issues may be more important for a small firm.
• D)small firms invest more in short-term assets than large companies.