Explain the two discounted cash flow approach

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AMAC Industrial would like to determine the fair value of their manufacturing facility in Alberta. The facility consists building and manufacturing equipment. The cash flows that they anticipate in their valuation process are not certain. They plan to use a discounted cash flow model to value the property.

Problem a. Explain the two discounted cash flow approach - Traditional Cash Flow vs. Expected Cash Flow:

Problem b.
Identify which approach (Traditional Cash Flow vs. Expected Cash Flow) you would recommend and why?

Reference no: EM132997908

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