Final answer:
The analysis of valuing a complete business enterprise is complicated due to the need to establish a discount rate and determine a terminal firm value, which reflects the present value of future benefits.
Step-by-step explanation:
When valuing a complete business enterprise, the same process that is used for individual projects can be applied. However, the analysis is complicated because a discount rate must be used, and a terminal firm value must be determined. The discount rate is pivotal to the present discounted value calculation, which is used to establish what one is willing to pay in the present for a future stream of benefits. This could include potential capital gains from the future sale of stock and any dividends that might be paid. The valuation process must take into account the riskiness of the investment, as well as fluctuating market interest rates, which can impact expectations of future profits.