Regardless of the Level of Uncertainty,it Is Possible to Value

question 15

True/False

Regardless of the level of uncertainty,it is possible to value assets or a project using a standard discounted cash flow (DCF )approach or a stochastic simulation.However,in cases when managers can decide among different alternatives in response to certain events,contingent valuation approaches are useful.

---

Definitions:

Limited Liability

A legal structure where a person's financial responsibility for a company's debts and obligations is restricted to a fixed amount, typically their investment.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business.

Undisclosed Principal

A person who is represented in a transaction by an agent but whose identity is not revealed to the third party involved.

Agent's Authority

Refers to the powers granted to an agent by the principal, enabling the agent to act on behalf of the principal in legal or business matters.