Question

QUESTION 1

The future value of a going concern is often measured by a discounted cash flow model.

True

False

QUESTION 2

Replacement value insurance helps insure against the impact of inflation.

True

False

QUESTION 3

One valuation technique should be used universally and consistently for all valuation decisions.

True

False

QUESTION 4

Greed was a significant factor in the financial crisis that began in 2008.

True

False

QUESTION 5

Mismatching cash flows and discount rates when attempting to value an organization can cause significant valuation errors.

True

False

Answer 1

HI

As per policy we will solve only one question here.

1) Discounted cash flow is the process in which company's(going concern) value is found out using future cash flows and appropriate discount factor. This method is predominantly used to find out company's present and future cash flows.

Hence the statement is True here.

Thanks