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.

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Definitions:

Manifest Consent

Clearly and unmistakably expressed agreement or approval to an action or proposal.

Authorized Act

An action that has been officially approved or sanctioned by the proper authority.

Express Authority

The clear, direct authority granted by a principal to an agent, specifically outlined in their agreement.

Actual Authority

An agent’s ability to affect the principal’s legal relations. Consent must be communicated to the agent.