Discuss the below:
1- DCF:
Although the mathematics of DCF looks so simple and compelling, the implementation of DCF technique becomes a minefield of problems. The problems can be either with estimating cash flows and discount rates. Identify one problem from each type and explain.
2- WORKING CAPITAL:
We assumed that a firm would recover all of the working capital it invested in a project. Is this a reasonable assumption? When might it be not valid?