Explore BrainMass

Explore BrainMass

    Advantages of Discounted Cash Flow Methods of Capital Investment

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are the advantages of using discounted cash flow methods of capital investment evaluation?

    © BrainMass Inc. brainmass.com March 4, 2021, 10:25 pm ad1c9bdddf

    Solution Preview

    There are several advantages of DCF:

    1. The best reason to like DCF is that it produces the closest thing to an intrinsic value. The alternatives to DCF are relative valuation measures, which use multiples to compare projects. While relative valuation metrics are fairly simple to calculate, they ...

    Solution Summary

    The solution does a great job of explaining the answer regarding the advantages of discounted cash flow methods of capital investment. The solution is very well written and easy to follow along and clearly explains the process in a simple way. Overall, a great response to the question being asked.