Which of the following statements about capital budgeting practices in small firms is true?
A. A large number of owners rely on discounted cash flow (DCF) techniques.
B. Small business owners are not very sophisticated about using theoretically sound financial methods.
C. In the past, most small business owners relied on the internal rate of return (IRR) method to make capital budgeting decisions.
D. Most small business owners today are unwilling to learn how to use discounted cash flow (DCF) tools.
Answer: B
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