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Create an argument that use of the present value free cash-
flow method has a more beneficial economic meaning than
earnings-based methods. Provide support for your argument.
Assess the challenges related to using the present value of the
free cash-flow valuation method in practice, suggesting how
each of these challenges may be overcome. Provide support for
your rationale.
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ACC 573 Week 8 DQ 2
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Assess how the free cash-flow method can be used when a
company is profitable yet the cash-flow values are expected to
be negative over the next five years, indicating the likely
impact on the valuation. Provide support for your rationale.
Assess which cash-flow variables are the most sensitive to
change and the likely impact on a firm’s valuation. Provide
support for your answer.