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.
Chow
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San Diego State University, CA.
McNamee
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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