Since above average profit growth is not sustainable indefinitely, cash flows for such firms should be projected until they are expected to slow to the industry average.

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Quizplus · Accepted Answer

This statement is true. Above average profit growth is typically not sustainable in the long term, and it is important to project cash flows until they are expected to slow down to a more sustainable rate that aligns with the industry average. This is important for businesses that want to plan for the future and make strategic decisions based on accurate projections of their financial performance.

Since Above Average Profit Growth Is Not Sustainable Indefinitely, Cash