A Reason That a Small Firm Would Not Use a Discounted

Multiple Choice

A reason that a small firm would not use a discounted cash flow technique in evaluating capital investments would be

A) company management has a preference for another quantitative method.
B) liquidity is less of an issue for a small company.
C) non-financial issues may be more important for a small firm.
D) small firms invest more in short-term assets than large companies.