Infinance,discounted cash flow(DCF) analysis is a common technique of placing value on a project or...

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Accounting

Infinance,discounted cash flow(DCF) analysis is a common technique of placing value on a project or company. All of the futurecash flows are projected anddiscountedby using cost of capital to determine theirpresent values(PVs). Adding up all future cash flows, both incoming and outgoing, provides thenet present value(NPV).

Discuss a situation where a method to determine a projects valuation, other than discounted cash flow(DCF) analysis, would be favorable.

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