To Use the Discounted Cash Flow Method, the Future Cash

Multiple Choice

To use the Discounted Cash Flow method, the future cash flows have to be forecasted. To determine these estimates management will :

A) Make justified assumptions about income, expenses, profit and all other significant figures
B) Use a benchmarking approach to align the firm's cash flows with its rivals' cash flows
C) Use accounting data and directly extrapolate from the past the future cash flows
D) Reach consensus by discussion with a group of external experts such as stockbrokers