Which of the Following Is True Regarding the Traditional Approach

Multiple Choice

Which of the following is true regarding the traditional approach to estimating the fair value of an intangible asset?

A) The traditional approach requires the use of the risk-free rate of interest.
B) The traditional approach requires the use of various possible outcomes and their probability of occurrence.
C) The traditional approach requires the use of judgment in determining a risk-adjusted rate of interest.
D) The traditional approach requires the assumption that cash flows occur at the beginning of each period (an annuity due) .