Why would you use the mid-year convention in a DCF?

• Because it lets you apply a single blended discount factor to every year instead of separate ones
• It assumes cash arrives mid-year on average, discounting at half-year periods, which is more realistic
• Because it shifts each cash flow to year-end, which is the most conservative timing assumption
• Because it discounts the terminal value more heavily than the interim flows, offsetting its outsized share of the total value
• Because it converts nominal cash flows to real ones, correcting for inflation over the forecast