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    5. Which valuation approach is used in Discounted Cash Flow (DCF) method?

    Question

    Which valuation approach is used in Discounted Cash Flow

    (DCF) method?
    A Cost-based Correct Answer Incorrect Answer
    B Income-based Correct Answer Incorrect Answer
    C Market-based Correct Answer Incorrect Answer
    D Asset-based Correct Answer Incorrect Answer

    Solution

    DCF involves projecting future cash flows and discounting them to present value using a suitable discount rate, based on income potential.

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