Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 21 - Capital Budgeting and Cost Analysis - Assignment Material - Questions - Page 830: 21-9

Answer

Yes, I agree. While discounted cash flow (DCF) analysis is a valuable financial tool, it should not overshadow strategic considerations. Managers must strike a balance between financial metrics and broader strategic objectives. Overreliance on DCF alone can lead to a narrow focus on short-term financial gains at the expense of long-term strategic goals.

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