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The advantage of a discounted cash flow method could be beneficial for a company over a non discounted cash flow because
Discounted cash flows consider the effect of time value of money which indicates that money looses value overtime due to inflation, so If cash flows are discounted it might end up in a realistic appraisal to some extent.
Secondly when cash flows are discounted the cost of capital might also incorporate the risk factors as well
Is this correct sir ?
If they asked the benefits of discounted cash flows over non discounted cash flows
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