Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 12

“Let’s be more practical. DCF is not the only gospel. Many managers have become too absorbed with DCF.” Can such a statement be justified? Why?

Step 1 of 2

Discounted Cash Flow DCF is method of finding value of any investment made with the help of analyzing the proposed future cash flows including the effect of interest rate or discount rate on these cash flows.