Discounted cash flow estimates are only accurate if
A) calculations are made correctly.
B) the original estimates of profits are accurate.
C) management has instituted sufficient financial control systems.
D) they are made in a timely fashion.

Question

Quizplus · Accepted Answer

Discounted cash flow estimates rely heavily on the accuracy of the original profit estimates, as these projections form the basis for calculating future cash flows.

Discounted Cash Flow Estimates Are Only Accurate If