Discounted cash flow and option pricing approaches to project valuation are incompatible; when one approach is used, the other should not be used.

Name: Discounted cash flow and option pricing approaches to project valuation are incompatible; when one approach is used, the other should not be used.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When used as a second opinion, the approaches are complements and can provide a more robust picture of the sources of value, the opportunities, and the risks.

Discounted Cash Flow and Option Pricing Approaches to Project Valuation