Quiz Ch 11 – T/F DCF Capital Budgeting in Small Businesses: Factors and Considerations
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Compared to larger businesses, small businesses tend to employ discounted cash flow (DCF) capital budgeting techniques less frequently. This might stem from small firms’ managers having limited understanding, or it could be a rational decision based on the belief that the costs of utilizing DCF analysis outweigh the benefits for very small enterprises.