A Disadvantage of Using the Discounted Cash Flow Method (Or

question 26

True/False

A disadvantage of using the discounted cash flow method (or net present value. for selecting projects is that it ignores all non-monetary factors associated with the project except risk.

---

Definitions:

Cost Control Measures

Strategies or actions taken by a company to maintain or reduce costs in order to improve profitability.

"What-If" Scenarios

"What-If" Scenarios are analytical techniques used to understand the potential outcomes of different actions in decision-making processes.

Economic Order Quantity

A formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs.

Inventory Level

The quantity of goods, materials, or products that are held by a company at a given time, used to meet demand without incurring excess or shortage.