Discounted cash flow and the asset-oriented valuation methods necessarily provide identical results.

Question

Quizplus · Accepted Answer

Discounted cash flow and asset-oriented valuation methods are two different approaches to valuing assets. While discounted cash flow focuses on the present value of future cash flows, asset-oriented valuation is based on the value of assets and liabilities. Therefore, the results of these two methods may differ depending on the asset being valued and the market conditions.

Discounted Cash Flow and the Asset-Oriented Valuation Methods Necessarily Provide