When Using Discounted Cash Flow Analysis for Valuation, an Appraiser

question 34

Multiple Choice

When using discounted cash flow analysis for valuation, an appraiser will prepare a cash flow forecast, often referred to as a:

• A) restricted appraisal report
• B) net operating income statement
• C) direct market extraction
• D) pro forma

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Definitions:

Joint Benefit

The advantages or profits derived from a venture, project, or activity that are shared by all participating parties.

Department

A specialized functional area within an organization, focused on a specific area of activity or responsibility.

Selling Department

A division within a company responsible for managing sales activities and strategies to sell products or services.

Profit Center

A branch or division of a company that is responsible for generating its own revenue and profit.