In the discounted cash flow valuation procedure

Assignment Help Financial Management

Reference no: EM131297989

In the Discounted Cash Flow (DCF) valuation procedure:

Question options:

A) The cash flows should represent a conservative or pessimistic forecast, so as to make sure you don't encounter unexpected problems later on.

B) The cash flows should represent an aggressive or optimistic forecast, to help sell the property as quickly as possible.

C) The cash flows should be realistic best-guess forecasts, as risk always has both an "upside" and "downside".

D) The cash flow forecast should obey the "G.I.G.O" rule: "Get In and Get Out" before the market crashes.

Reference no: EM131297989

Questions Cloud

What is the value of the property if required initial return : Suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease (annual payments). At the end of 10 years, just after collecting the rent for that year, you expect to sell the building for..

List the similarities between jewish moroccan-bakk ashot : List the Similarities and Differences between Jewish - Moroccan 'Bakk ashot' and Jewish - Ottoman 'Maftirim'.

What factor you believe most likely to contribute to capital : Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis failure.

Show the long-run effects of the pollution crackdown : California plans to crack down on the use of fumigants by growers of strawberries. The biggest burden will fall on Ventura County's growers, who produce about 90 percent of the nation's crop.

In the discounted cash flow valuation procedure : In the Discounted Cash Flow (DCF) valuation procedure:

Why did grain prices fall in 2008 : Why did grain prices fall in 2008? Draw a graph to show the short-run effect on an individual farmer's economic profit.

Prepare a business plan for a startup acute care hospital : The project is to prepare a business plan for a 200 bed startup acute care hospital in McAllen Texas. Part A - overview and strategy, part B - market analysis and part C - operations.

How much was the companys long-term debt at year end : How much was the company's long-term debt at year end? Compute the company's debt to equity ratio at year end. How does it compare to the industry? What does this tell you about the company?

What will be the long-run effects on the market for ethanol : Explain the effect of a fall in the oil price on the market for ethanol. If the price of oil remains low for some years, what will be the long-run effects on the market for ethanol and the number of ethanol producers?

User Account

All Pages