The DCF approach requires that we forecast a company`s cash flows into the _______ and discount them to the present in order to arrive at a __________value for the company.a.Future; futureb.Present; futurec.Present; presentd.Future; present

Within finance, how does the Discounted Cash Flow (DCF) method function in aiding the decision-making in M&As?

If we use future value of cash flows rather than present value to decide whether to make an investment: a. we will make the same decision using either future value or present value. b. We will make a good decision, since the future value will always be higher if the discount rate is positive. c. we will make a bad decision, since the future value will always be lower if the discount rate is positive. d. we will make a bad decision, since the future value will always be higher if the discount rate is positive. e. There is not enough information given to answer the question.

The DCF model estimates a company`s __________ (value based on a company`s ability to generate cash flows) and is often presented in comparison to the company`s _____________.a.Intrinsic value; market valueb.Intrinsic value; historic valuec.Extrinsic value; historic valued.Extrinsic value; market valueClear my choice

Discounted cash flow method attempts to figure out the value of an investment today based on projections of how much money it will generate in the future.Select one:TrueFalse

Which of the following is the primary reason a client would need a cash flow forecast?