Watch for pitfalls of discounted cash flow techniques.
Discounted cash flow (DCF) techniques can enhance the effectiveness of a healthcare organization's capital budgeting decisions. But a financial manager unaware of common misapplications of DCF techniques may make capital decisions with a hidden bias against long-term projects, an inaccurate evaluation of options, or inappropriate estimations of expected inflation and risk. Social and psychological factors also can impede effective decisions on projects already introduced.
San Diego State University, CA.
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D000067:Accounts Payable and Receivable; D002017:Budgets; D002201:Capital Expenditures; D003657:Decision Making; D005377:Financial Management, Hospital / Q000379:methods*; D007182:Income; D012306:Risk; D014481:United States