Evaluating discounted cash flow capital budgeting techniques


1) Evaluate discounted cash flow (DCF) and non-discounted cash flow capital budgeting techniques. If you were to estimate a project, which one of these techniques would you employ?

2) Write down the 4 methods of computing operating cash flow? Under what situations is each method suitable?

3) Briefly explain each of the 4 methods of performing “what if” analysis. What is the financial analyst’s major goal when conducting each analysis? Describe each goal in detail. Under what situations would each method be suitable?

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Finance Basics: Evaluating discounted cash flow capital budgeting techniques
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