In cash flow estimation,the existence of externalities must be taken into account if those externalities have any effects on the firm's cash flows.

Name: In cash flow estimation,the existence of externalities must be taken into account if those externalities have any effects on the firm's cash flows.
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Question

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Externalities, such as changes in the economy or industry-specific factors, can impact a firm's cash flows. Thus, it is important to consider such factors when estimating cash flows.

In Cash Flow Estimation,the Existence of Externalities Must Be Taken