Using the discounted future earnings approach,the buyer estimates:

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The discounted future earnings approach estimates the company's net income for several years and then discounts it back to its present value, taking into account the time value of money. This approach helps in determining the intrinsic value of the business and making an informed decision about the purchase price. It is not limited to six months or net assets but instead focuses on the long-term earnings potential of the company.

Using the Discounted Future Earnings Approach,the Buyer Estimates