Task: Discounted Cash Flow Alternatives
There are a number of different approaches that can be used to evaluate whether a company should approve a particular project. Each method has specific advantages and disadvantages, and certain scenarios could benefit from the use of a particular method. Consider your professional experience and knowledge gained from the readings as you answer the following Discussion question:
What are the alternatives to discounted cash flows? Evaluate the advantages and disadvantages of each alternative. Using an example from your professional experience, choose one method and discuss a scenario in which you would use this method. Explain your choice.