Question
Which of the following is NOT the feature of Discounted
cash flow Analysis?Solution
Discounted Cash Flow analysis is forward-looking and depends more future expectations rather than historical results. It is more inward-looking, relying on the fundamental expectations of the business or asset, and is influenced to a lesser extent by volatile external factors. ·It is focused on cash flow generation and is less affected by accounting practices and assumptions.
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(ii) Section 120A
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