Detail the pros and cons of using discounted cash flow

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Laura and Alonso are considering selling their software firm to a major corporation. During their talks with Microsoft, they've argued with MS about to properly value the firm. Their firm has moderate but steadily increasing sales and is well past the initial development and startup stages--they've just recently begun to generate profits. Laura and Alonso believe the business just needs more marketing to go worldwide and make large profits. Explain in detail the pros and cons of using discounted cash flow with WACC, adjusted present value, price-to-earnings ratio multipliers, and economic value added (using NOPAT) to value this particular firm.

Reference no: EM131869795

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